[Kransha]

I think it's more of a mythic history than a "fairy-tale." I mean, it is Tolkein's third age myth for Britain, as it was described. The aspects and writing are designed to resemble a mythic piece of work, such as the Iliad or Oddysey (not written in verse, though). This also explains the amount of songs and poetry, relating to many legends. LotR and the Silm are intricate portrayals of Middle-Earth's past and present, written like a historic document with a more up-close and personal feel.