That is 100% 「ほう」, not 「かた」.
When 「方」 is read 「かた」, it is a very polite and respectful way of saying "a person". Look carefully at the words used in that sentence, such as 「[奴]{やつ} = a derogatory "dude"」、「[見]{み}ちまう = the tough guy's way of saying 見てしまう」、「できねえ = the tough guy's できない」, etc. There is no chance that a word like [方]{かた} would be used with those words in the same sentence.
Whenever [方]{ほう} is used, it is comparing TWO things. In this sentence, the two things are:
[空想]{くうそう}だけで[何]{なん}でもできちゃう[奴]{やつ} = "a guy who can do anything in his imagination"
何にもできねえ方 = "a guy who can't do anything (in his imagination)" Here,「方」 refers to 「奴」.
And the speaker is saying that it is more peaceful to be the latter type of guy.
See my answer here: Difference between なり (meaning 'either.. or...') and か (meaning 'or')