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Well, I agree that the youkai "world" isn't separate, but I think what is meant is more of social association rather than an actual place. But then again, there are separate pockets of youkai civilization her and there so it might be possible to relate the literal and metaphorical implications there as well.
But if what the Bus Driver and Nekonome did during Sun's arc was to temporarily enclose Marin's inn in a barrier, that could have meant that the inn was for a short time put into the so-called youkai world to hide the battle being waged there. So it could be said that the mysterious house right next door to you could also be located in Youkai territory. Even if the house itself was still visible, what goes on there probably isn't visible to the outside onlooker.
Where as the stronger barriers like the Grand Barrier not only renders the premises it's protecting invisible, it may also stretch space in such a way that if you walked in the direction of the school from the outside, the distorted space would displace the area so that you could literally be standing with both feet on opposite sides of the barrier as if you were standing over an invisible model of the entire school and it's surroundings, compressed to maybe the size of that computer mouse in your hand.
If those barriers collapse, earth suddenly gains a few square miles of extra land that hasn't been accounted for in current maps, and other side effects as well.
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