I still want the Suicune and Latias stories to be real/normal with their setups/storyline structures (Mainly out of favoritism, petty as it may be) , but beyond those two I'd be completely down with other Legendary stories being done in a folklore style.

If you ask me, should you get the chance, maybe you could do the following Legendary Pokemon that are among my favorites in correlation to this style you mentioned:

Victini: give him/her a semblance to the Joan of Arc story. Badass heroine who helped her people but died in vain

Jirachi: Play with the human's wish of wanting a friend with Jirachi wanting a mate of her own too. As my favorite jirachu, doesn't she look almost human like for a fairy looking pokemon from space? Maybe her ancestors were Ultra Beasts in the distant pasts. But her and future generations have resided on earth. Give it an Ancient Aliens mix into this. Research on Georgio Tsukolos for inspiration.

This type of writing style seems to fit legendaries or mythicals tied to folk tales best. DPP is full of them (Creation and Lake Trio), XY has legends told of a deer-like creature capable of giving eternal life, Mew has been compared to a mirage, Celebi has a shrine made in its name.

Not to mention Articuno appearing before travelers lost in the blizzard, or the Tapus being guardian deities worshipped by the locals, each having their own folk tale told about them, with Koko and Fini providing the best material based on their pokédex entries. Lele and its reinvigorating scales isn't bad either.
This aside you have my full, undivided support!

I think so, and that style of fairy tale would be better fitting that idea I threw out earlier of the Lake Trio, and other Sinnoh legends as well.

Johto is also pretty steeped in myth and folklore, with Lugia, Ho-oh, and Celebi all having quite a bit of devotion to them and words sung of their praise and surprising gentlesness.