Symbolism, Imagery, Allegory
The Velveteen Rabbit wasn't worried about keeping it real; he was too preoccupied about becoming Real.
The Skin Horse explains the process here:
"Real isn't how you are made," said the Skin Horse. "It's a thing that happens to you. When a child loves you for a long, long time, not just to play with, but REALLY loves you, then you become Real."
"Does it hurt?" asked the Rabbit.
"Sometimes," said the Skin Horse, for he was always truthful. "When you are Real you don't mind being hurt."
"Does it happen all at once, like being wound up," he asked, "or bit by bit?"
"It doesn't happen all at once," said the Skin Horse. "You become. It takes a long time. That's why it doesn't happen often to people who break easily, or have sharp edges, or who have to be carefully kept. Generally, by the time you are Real, most of your hair has been loved off, and your eyes drop out and you get loose in the joints and very shabby. But these things don't matter at all, because once you are Real you can't be ugly, except to people who don't understand." (6-10)
That sounds very deep. And kind of confusing. So what is Real exactly?
Well, there are a couple kinds of "real" in the story. The Rabbit is literally real in that he's an actual object. He's a toy that the Boy can touch and play with so he's part of reality. But when the Skin Horse talks about Real (with a capital R) he's talking about realness on a whole different level.
That kind of Real is different than just existing. It means that the Rabbit becomes a true and authentic version of himself when he's loved. By opening himself to the Boy's friendship, the Rabbit is able to feel a full spectrum of emotions like hope, joy, sorrow, and loss. He learns that love can be the most incredible feeling in the world and also the most heartbreaking. That's pretty dang Real.
The last kind of realness in the story is when the Rabbit is turned into an actual wild rabbit. Yes, the Velveteen Rabbit was Real in a lot of ways. He could love and feel things, but he couldn't move or express his emotions to others. When the Fairy turns the Rabbit into a wild rabbit, she gives him the ability that the other rabbits have—the freedom to dance and play and choose his own path. Now he can hop along where he likes.
In the end, the Velveteen Rabbit becomes fully and truly Real because he was brave enough to open his heart to another person. Love can be a scary thing. But it can also be one heck of a journey.
Way to keep it real, little guy.