in the 90's there was a work of fiction published by raymond e feist that was a departure from his normal style, which is that of LOTR type fantasy (amazing series of books btw) but his contemporary book was entitled faerie tale. it dealt with this type phenomena and with the history of 'magical' beings from legend.
now, as to how this applies here...well, it was a very well researched book and the underlying implication of the book was that most legends and fairy
tales have a basis in the real world and in real history. they had to come from somewhere etc.
id def recomend it if for no other reason than its a good read.
but, ive worn a 'fairy stone' for over 12 years now after reading it, "just in case"