I think one of the joys of this short story is that it defies interpretation. You need to note how the villagers are often exposed as foolish and gullible in their beliefs, and also how they try to make sense of the world. They stick fast to "facts" even though they are clearly ridiculous, such as the fact that angels eat mothballs, and they jump to impossible conclusions, for example when some argue that the old man should be proclaimed "mayor of the world." It is almost as if once they have conceived of an idea they make reality "fit" to support that idea despite any protestations to the contrary - or until a "better" version of the "truth" comes along and then the process beings again. Of course, the villagers, although they can be said to be figures of fun in this sense, contain many characteristics which we can identify whatever our time or culture - for example the unquestioning belief in their own wisdom and their stubborn clinging to their own ideas are aspects which we can all identify.