Folklore, Magic, Myth, Legend
I believe Christians too readily dismiss mythology as bad. Yes, it is bad to glorify evil. We probably don't want to read or watch the Twilight series, but also there the myth of the vampire is flipped on its head to a degree.
I believe that folklore and mythology has important lessons embedded that can help us to understand certain things - acting as a sort of parable. If we consider how myths develop, it's likely that they represent subconscious realities and questions. To become a popular folktale, the aspects of a story must be "agreed upon" in some sense. That is, it must resonate with enough people for it to be passed on. Legends are filtered through the consciousness (intuition, memory) of a lot of people and therefore it becomes a distilled and interesting tale.