2.) The other is that "folk" likely did not told stories to kids every evening the way we do. This I gather as unprobable after reading book about childhood in Germany before wars. The kids did not get as much individual attention and general attention.
Demographic that was ok with kids working in factories had both parents working 12 hours a day with no weekend. These had 5 years old whole day alone on the streets or "responsible" for gooses with no adult present. There was no one to gently tuck them to bed and tell them story so that they learn "morals" or what. These were overworked adults desperately needing a bit of rest for themselves.
Your kids are not getting bedtime stories at all in that situation.
3.) My observation from kids: We push stories and reading on kids a lot and very soon. Sooner then they actually like it. Small kids like shorter super simple stories. The original form is not for kids not just because it is dark, but also because it is unnecessary long and slow moving for such kid.