I too have had frustrations with oral history. Especially with dates. I feel that using family lore and actual facts are both important in family history. However, acknowledging truth and fiction must be done. Keeping family lore as part of the family history gives an outlook and understanding of our ancestors. I have found that history unknowingly repeats itself in the family, and I find it fansinating to see when I hear stories of my ancestors and see how my family members today are mirroring them.
So, I say keep Family lore in the family history, it keeps it interesting.

Take Care

S Evans