jigjag - I'm guessing you went for the other option and removed FAIRIES from the perimeter leaving vacant cells - and making non-words of 11ac, 4 and 5dn (one of them a thematic entry).
Also, the first sentence of the preamble is no longer accurate if we remove part of the first synonymous phrase (well, that was my reasoning, plus the capitals 'hint' - if it is one - but you may be right).
I can't think of another way that would leave vacant cells in the finished grid, please let me know if there is another way (I'm not totally convinced by my own interpretation of the preamble - I really don't like puzzles where we must guess what the setter had in mind).