Yep, "silly" is a good word for it. As mentioned in another thread, breaking the fourth wall in a dramatic story is as fundamental an error as using deus ex machina or forgetting to give your characters personality.
Given the very high quality of the rest of the story, I think this is a casualty of PDS's development being rushed towards the end. Sometimes game developers need to put something in that they know is bad just so that they can get something out at all.
On the bright side, due to the rest of the story being so well-constructed, it's no problem for me to imagine my own ending to the game.
It didn't really bother me much, it just caught me off guard a little bit. Didn't decrease my enjoyment of the game in the least; still one of the best gaming experiences and will never be duplicated. Same concept happens in Baten Kaitos, and that's a great RPG also.