The Stories of the Lotus Sutra, p56The parable is interpreted as saying that the world is like a burning house. … [T]he verse version of the parable goes to great lengths to describe the terrors inside the burning house, perhaps leading some to think that our goal should be to escape from the burning house that is this world.
But escaping from the world is not at all what the Sutra teaches. Elsewhere it makes clear that we are to work in the world to help or save others. The point here is more that we are like children at play, not paying enough attention to the environment around us. Perhaps it is not the whole world that is in flames but our own playgrounds, the private worlds we create out of our attachments and out of our complacency. Thus leaving the house is not escaping from the world but leaving behind our play-world, our attachments and illusions, or at least some of them, in order to enter the real world.