outhouse
Atheistically
I said that real places and such can be used as backdrop to such stories. Just because the setting or surrounding events to a mythical story has roots in reality doesn't mean the central story is accurate. We use literary tactics such as this all the time. It is done to make something feel more "real", to make it something we can identify with easier. It's a good story telling tactic and it is seen everywhere.
while in that context does apply for many legends it doesnt apply to all, is my only point.
All the different stories have different amounts of historicity and I find it hard to generalize them all together