This small talk that you mention is one facet of the many facets of the power of the imagination that human species is empowered with.
The good part is that this imagination can be given direction and made to align with the existential reality or it can create its own reality which the lesser faculty that humna beings have which are called as Mann and Vriti in eastern philosophy will start accepting as right.
Mann is the most lower faculty keeping track of likings and makes choices. Based on the choices made our brain acts and controls the body.You can think of this as a hypothesis and evaluate and validate.
Now coming to the small talk that goes on there is a higher faculty that controls the thoughts and we imagine what the thought organ or Buddhi tells us.
We as a human being have the power to direct the thoughts and based on them the small talk of imagination will occur.
It is really awesome way in which you have described about how to handle both kinds of small talk.
Would love to read more on the working of the virtual side of human beings beyond the hardware that is the brain. The operating system of human beings needs to be thoroughly understood and hope to spread that knowledge to all mankind.