Hereford Eye said:
While we're on the topic of categorization; here are some books that contain fantasy elements. How would we categorize these?
Animal Farm - George Orwell
Bless Me, Ultima - Rudolfo Anaya
Moby Dick - Herman Melville
The Bull From the Sea - Mary Renault
The Five People You Meet in Heaven - Mitch Albom
The Lovely Bones - Alice Sebold
White Lotus - John Hersey
BTW, we will not find them in the sff sections of our libraries or book stores. Why is that?
I explained all that in my category post.

It has to do with when they were published, who published them and what audience they were marketed to.
Animal Farm -- Considered classical literature, sold in classics or general fiction, published in the time before there was a fantasy genre, though even if it had been published later, it would still probably have been published as non-genre fantastic literary satire. The story and its focus would have minimal interest for most genre fantasy fans, therefore genre publishers haven't bothered to try to reprint it.
Bless Me, Ultima -- Belongs to the school of fiction called magic realism. Magic realist authors, the best known group being the South and Central American authors, use fantasy elements, but their work is considered literary fiction, often historical, and the types of stories they pursue again would be of interest to only a small group of genre fantasy fans. Genre publishers have little interest in the magic realists, though some types of fantasy with a South American setting may be of interest.
Moby Dick -- I'm guessing some fantasy got sneaked in there as part of the religious symbolism (haven't read it yet -- can you believe,) but it isn't generally considered to be a fantasy novel. If it were, though, given that it was published long ago before genre fantasy existed, it would be considered classical literature, not genre fantasy.
Bull From the Sea -- Again, published before the genre of fantasy existed. Considered classical literature and sold in general fiction if in print. Of more interest to genre fantasy readers, but evidently not enough to get the genre publishers to seek reprinting.
The Five People You Meet in Heaven -- a contemporary novel with fantasy elements as a religious, inspirational parable. Published by a non-genre publisher. Of little interest to genre fans and publishers.
The Lovely Bones -- literary contemporary novel with fantasy elements, published by a non-genre publisher. Of limited interest to genre fans and genre publishers.
White Lotus -- Also published long before a fantasy genre existed, considered classical literature. Unlikely to be of interest to most genre fans and genre publishers.
There are dozens of novels published as non-genre that contain fantasy and sf elements -- John Updike, Margaret Atwood, Michael Crichton, Tess Garitsen, Amy Tan, etc. We could, as genres, claim them, but genre publishers and the fans they are trying to market to have no burning desire to do so. It would not be very effective and it would clutter up the sf/f shelves. It's not that literary style fiction is of no interest to genre fans, but genre publishers seek stories, literary style or no, that will be of maximum interest to genre fans, and it is unlikely that a large number of those fans are burning to buy the Del Rey edition of "Animal Farm." Especially when they can get it from a non-genre publisher perfectly easily.
It comes down to which publisher the author sold the work to, and what audience the publisher then tries to chiefly sell to. A non-genre sf or fantasy work might be sold in the sf/f section if they think it will interest the fan audience, like "Jurassic Park," but is mainly marketed to a mainstream audience as general fiction. A genre work may be marketed to the mainstream and they love to get a crossover audience, but the main market is the genre fans. When we talk about a book with fantasy or sf elements, we can talk about any title we like, but when we talk about
genres, we're talking about publishers and markets. It is an artificial construct created for a specific niche audience.