Dys, there's good evidence of this where authors take the same myth and tell it differently to evoke different ethics and morals (see the Greek tragedians). However, in Christianity, Paul is using the OT "history" as fact (I can cite examples, if I must, but this should be standard knowledge) and the gospels use the lineage described in the OT as fact (even though they differ and Matthew cannot count). So while that argument may work for Judaism, Christianity believes differently.
Grey, yes, you've understood the question. I am not limiting my openness to response to Christianity, but I am supposing we only have TWA as our pagan and the rest are Christian and atheist/ agnostic? Anyway, the point is not so much "how do we reconcile belief with reality" as it is "how much metaphor can we take before we say this is rubbish?" For example, TWA the resident pagan is getting harassed for his beliefs, but what makes his "history" worse than Christian "history?" or if you prefer, what makes his metaphors worse than Christian metaphors? (is this making sense?)