Well that's the old root of Pendragon, the enchantment of Britain which induces a fantastic technical evolution under the rule of the Good King wearing the Kings' Sword as a spiritual link between the land and the people. That's magic and fantasy, and there are also witches and faeries in this game. But in fact you can easily play it as you want, heavy armors and big stone castles are facultative and appear at a later period of the campaign. You could stick with a more realistic technology with no problem.
In fact, medieval knights society can easily be described in more celtic ways. Call your knights free-men, land-owners or champions, and their household shield-carriers, spear-holders, or horse-drivers and you have it. (Sorry I play in French, I have more vocabulary in my own language). Sit your guests in circle at a hall on top of a fortified hill with cauldrons and harpers, rather than have them dine on a table behind heavy hangings on walls, hearing minstrels and jugglers, and you do a lot for the mood.
It's how you tell the tale and transmit to the players that's important, Pendragon have plenty of material you just dig in to take what you want. The core mecanism is the passion system and how heroic warriors struggle with to achieve greatness. That's totally "celtic".
The only problem is names. But that's a small difficulty compared to the fact that you have a eighty-years campaign to play. That's a unique experience in roleplaying-games.