In the right hands an effective piece of entertainment.
Stories are about communication and sharing. All stories need exaggeration to make them less ordinary. The fabulous and mystical make better stories than the every day experiences. Stories explore the territory between real and unreal, legend and myth, possible and impossible. Many stories now are engrained in national culture but impossible to prove. Robin Hood and King Arthur are the two most enduring but there is no tangible proof of their existence. Likewise, the endurance of the stories points to more than mere myth or imagination.
Some stories of course are made up and most are repeated variations of older stories which themselves go back to the dawn of time.
Stories should be told by a Storyteller who will gauge the audience, adapt the stories, spark a rapport and entertain or educate as appropriate.