The only thing that bothered me about it was Troi's explanation. The Universal Translator translated the words, but not the context, which caused the communication problem. However, when the Federation encountered species where the UT didn't work for one reason or another they employed telepaths like Betazoids or Vulcans to bridge the gap. A telepath linking with a Tamaran could grasp the context of a given message because they had joined their minds together. If Spock could mind-meld and understand the Horta (silicon-based throw-rug from Devil in the Dark) and a homicidal tin can (the Nomad probe) surely a Vulcan (or another telepath) could reconcile a simple folk tale being referenced as a metaphor.
That being said, I still thought it was an entertaining episode.