For the record I only listened to the first 18 minutes of his review before I turned it off.
Fictional stories are emotional stories, psychological stories. When humans communicate rational ideas it is called nonfiction. Fictional stories, myths, fairytales serve several psychological functions for human beings, the two most common I find are: 1) wish fulfillment, creating a world and events you would actually prefer to reality and 2) an attempt to explain or understand something that the writer does not understand on a conscious level well enough to write about it in any other way. Magic, dragons, witches, whatever--these represent psychological phenomenon, not reality. Magical powers don't usually represent madness, they represent the psychological process of transformation that feels magical.
For example: Ayn Rand wrote some okay plays trying to figure out what she wanted to say. Then she wrote some pretty high quality fictional stories where she finally worked out and was able to say what she wanted to say (getting progressively clearer with each story). And then she wrote nonfiction.
Back to Frozen: I interpret this story as a psychological story. It goes like this: I am supposed to hide the best within me, hide what makes me special so that I can fit in, I have to hide what is magical about me to make my family happy but it's making me so depressed! And one day I realize that hiding my true self is killing me. The damn breaks and I realize I can no longer hide who I am. I set off on my heroic journey to discover my lost self, the self I have been hiding and repressing. I have to do this alone. I have to get away from the people who won't let me be myself, so that I can find myself. On my heroic journey I encounter the terrifying demons in my psyche--the fear of what my parents will think, the fear of not being lovable, the fear that who I really am will destroy people. And I encounter the magic. The magic of rebirth, becoming whole, becoming really me, not hiding anymore, the glory of awareness rather than repression. Once I have integrated my lost self into myself, once I have become whole again I can return, confident in who I am.
Perhaps that is what the story could have been as it was not executed all that well BUT, this is not a story of madness. That is not what magic represents most of the time in myths and fairy tales. This is NOT to say that children should be exposed to representational stories that they cannot understand--they shouldn't be.