How is this passage from "The Nose" typical of the genre of magical realism?

today we'd use social media to quickly spread a controversial idea, but in the eighteenth century, the printed pamphlet was highly effective. and thomas paine took full advantage of it. on january 9, 1776, when paine published his pamphlet, "common sense," he wanted to push the american people toward independence from britain. it ultimately ignite the american revolution. thomas paine argued that the monarchy was evil and should be rejected as a form of government. to underscore his point, he cited the bible to argue his case -- in judges 8: 22-23: "the israelites said to gideon, 'rule over us, you and your son and your ' gideon told them, 'i will not rule over you. the lord will rule over you'" (nrsv).

it was surely an odd creature that one made up by reading the historians first and the poets afterwards a worm winged like an eagle; the spirit of life and elegance and charm,   in a kitchen chopping up suet. but these creatures, monst'r however entertaining to the imagination, hast no existence in fact. what one might doth to bringeth h'r to life wast to bethink poetically and prosaically at one and the same moment,   thus keeping in toucheth with fact—that the lady is mrs martin, ag'd thirty-six, did dress in blue, wearing a black coxcomb and brown shoeth; but not losing sight of fiction eith'r—that the lady is a vessel in which all s'rts of spirits and f'rces art coursing and flashing p'rpetually. the moment, howev'r, yond one tries this method with the elizabethan mistress, one brancheth of illumination fails; one is did hold up by the scarcity of facts.   one knoweth nothing detailed, nothing p'rfectly true and substantial about h'r.   hist'ry scarcely mentions h'r.   and i did turn to professeth'r trevelyan again to seeth what hist'ry meanteth to that gent.   i hath found by looking at his chapt'r headings yond t meanteth.