Exactly. Hence, the very fact that time passes there and is measureable, as we can see from the changing reactions by Gaspar, Spekkio, and the Heroes of Time, proves that something else is going on. Personally, I favour the idea of the End of Time not truly being the End of all Time, but being an area outside of our normal flow of time, somewhat like the DBT. As such, we have a different flow of time within the End of Time, hence Time Error, which I am in full support of.
Either way, Time Error is real, as proven by the events of the game. While it might actually be referred to as something different, it's the name we've given it.