
Sometimes I lean toward the Doylist view. A simple, typo, 'author-didn't-think-this-all-the-way-through' example: "Xzar slipped his left arm around Imoen's waste and laughed wildly at the chaos about them, Gromnir's soldiers burning and the skeletons the two mages had summoned finishing off the foes." Given that it's crazy Xzar, a Watsonian interpretation of exactly where he's putting that arm is possible, but it's obvious what the author intended y/y? Sometimes, I think a continuity error is just a continuity error. I don't deny that it can be fun to play with in fanfic, especially depending on what makes for a better story; I love Dorothy Sayers' theory on Watson and his wife. (I also love the theory that Watson married Grace Dunbar from The Problem of Thor Bridge as one of his apparently several wives; she was a good person who deserved better than the story's love interest given her.) And yet sometimes I don't think it necessarily does make a better story. In Harry Potter, fanfics that explore how 'Voldemort is stupid' take out the main villain of the Harry Potter series, thereby leaving the writer to seek a new antagonist; conversely, the plot of 'Dumbledore (the hero's mentor figure) is secretly a supervillain' is actually beyond the number of mistakes the character and his author are guilty of and may create more plot holes than it fixes. But like any writing discussion, it invokes personal opinion and comes down to specific examples in the end: your choice whether deconstruction or reconstruction or this particular tale involving those particular events is better or worse. (And never a discussion of what shouldn't be written, only a discussion of what might or might not be better in writing. Everything should be written, that's how one comes to discuss this sort of thing.)
Or in this fandom, an example is Officer Vai's line on 'Go collect some bandit scalps'. And how exactly are you going to know they're from bandits, Officer? Even if you're capable of casting Detect Evil, it's not renowned for working on inanimate body parts! Realistically, Vai's line on collecting the scalps is likely to encourage bad people to present the wrong scalps for a quick bounty. (I suppose you could argue that since the bounty isn't a huge sum, she's set it low enough that the average evil-doer won't find it worth the risk to murder innocent people for their scalps.) But because most people seem to like her voice, and because she's one of few female Flaming Fists, most writers present Vai as a reasonable and capable representative of the local authorities and don't have characters call her out on the bloodthirsty requirement. And I like it, I liked her voice and I like that there's at least a couple good Flaming Fist female officers even though the majority of Fists are male. It's an instance of a choice between a Doylist (Vai seems intended by the writers to be a reasonable authority figure and that approach happens to read well in fic; there's obvious unfortunate implications to one of few female authority figures proving corrupt) versus Watsonian (Hey, are you sure Vai's not evil or stupid?) approach. Either can be made to work. (I thought it was Oryx who had a character tell off Vai for her scalp-collection techniques, but it didn't show up for me when I searched.)
Examples, thoughts, personal preferences?
