1. Not allegorizing - that's something else.
2. Not mythologizing - I'm not turning it into anything, just treating it as what it is. Or, at least, attempting to do that. If I'm wrong, so be it - hopefully I'll work that out eventually, but my motive is to understand the text for what it is. Please do not ascribe other motives.
3. Not away - the theological meaning isn't removed, indeed it becomes clearer
1. It's not just a story. Myth is not a lesser thing than history - that's an enlightenment lie deliberately invented to de-power religion in general and Christianity in particular.
2. They don't need to.
3. They wouldn't be thinking in your categories in the first place, because those categories wouldn't be invented until hundreds of years later.
When we talk about story (historical or not) we don't usually label it with it's genre unless (a) that label is part of the name or (b) the person we are talking to isn't familiar with the story. Literal history is not some kind of default genre. The most fundamental genre is story. If I talk to a fellow fan of a TV program about what happened last night I don't bother to mention that it's all fiction, I just plow in with "What do you think about what happened to so and so last night". We talk about shared stories the same way whether they are factual or not, providing they are shared. That's even in true in a modern culture that's obsessed with the difference - how much more true in an ancient one that's more interested in meaning and truth than fact?
Sorry, but that simply is not true.
Because they don't share our culture's obsessions. Like all ancient cultures that take geneologies seriously they aren't fussed about the blurring of fact into myth as one goes back - the geneology is about where one fits in the world, in the previous story, not about academic game with irrelevant facts.