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Along those lines, let me throw in an observation I came to while reading to my daughter.
The fossil record tells us that Europe was the home of humanoid creatures who lived in caves and natural shelters, who were short, stocky, powerful, had large noses, and followed a meat-oriented diet. Neandertals.
European folklore features humanoid creatures who live in caves and natural shelters (and under bridges) who are short, stocky, powerful, have large noses, and follow a meat-oriented diet. Trolls.
Coincidence? Or is the folk lore actually "fossilized" history?