Especially since the fairy tale explicitly says that the people will find themselves drawn to the vessel, so it seems fair to accept that they'd also be inclined to accept the reality of it when revealed.
But yeah, the first thing you have to do is accept that this is not a story based in realism. If you hold onto that then there's no way you can like the movie. In addition to being a fairy tale, the story structure very much reminds me of the formula for epic fantasy.
The rules of magic are always weird, convoluted, and don't really make any sense. A ragtag group is always brought together to fill standard roles. They always too easily accept their role in the larger picture.
One thing I've seen a lot of criticism is the brief animatio sequence at the beginning that establishes the basics of the mythology involved. The Fellowship of the Ring starts exactly the same way.
For me the movie was very much an epic fantasy story set in something approximately the modern world and told with enough restraint so as not to span 11 novels.
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