Have you seen Tarsem Singh's The Fall?

you perfectly described just now what I love about that movie. The disconnect between the storyteller and the audience. The broad strokes are there sure, but the tiny intricacies color the world using the receiver's personal experience and upbringing creating all new meaning so together.

The man tells the story of how he lost his gf and broke his back, he yells of an Indian (native American) warrior but the little girl imagines this wonderful courageous Sikh...

I don't want to ruin anything but it's beautiful.