I think Kransha hit the nail on the head. A mythic history is exactly what I would call it. I don't really consider it a fairy tale just because...
1) Most of the fairy tales I have read have been pretty short (yes, I know there are most likely longer tales out there, it is just that I have not read them)
2)It does not contain fairy tale charaters in the generic sense (meaning there are no fairies, and the elves and dwarfs are much more real in a way)
3)It seems much more real in a way (And, yes, I have read the original non-disney Fairy Tales. LOTR is still different)
I think it could be kind of considered a story in the style of folktales in a way. But it would have to be considered a grand, mythic, folktale
