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Apparently by the mere supposition that he (yes, I said "he") perceives himself (again) as a bringer of joy and colour to an otherwise barren world. It's interesting to see how Valve played on the already-unclear identity of the Pyro. Upon reading some comments on the video, it seems that many people heard the Scout saying "He's not here, is she?", which I did not hear being uttered at all. And of course all the magical wonderland thing with lollipops confuses people further still.

And I think it was irony, Varrok.

In retrospect, the video is better than what I originally thought of it.

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Also if you turn on the subtitles in that vid the Scout says 'That freak's not in here is she'. And the lyrics to the song refer to a she and a girl multiple times.

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Except the line is "he's not here, is he?".
If the subtitles said otherwise, then Valve is just fuckin' with the deaf.

And the song wasn't written specifically for this. It's one of the most overplayed songs in existence and is the go-to for trippy/psychedelic/uplifting scenes in media. The fact that the original song is referring to a girl is coincidence at best.

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Also if you turn on the subtitles in that vid the Scout says 'That freak's not in here is she'.

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That would be awesome. But no.