this is a part i personally would add to the "culture" that toady wants to add later on, this wont work with dwarf fort as is now cause dwarves don't have any culture yet
anyway:
as time goes on in df, history is recorded
dragons are slain, mythical beasts rampage etc, and thats all cool and dandy
but thats not how it "could" or even "should" work
in my opinion, events should undergo the following 4 changes
1: events never recorded (2 isolated warriors fighting to the death and both die, for example) could just as well never have happened... that "record" should be removed out of the active history register
2: events no longer recorded in a society (ether written/etched, or mouth to mouth) is lost... and is removed out of the active record
3: every time an event is re-recorded by mouth to mouth or by "interpreting" an engraving or whatever, it mutates...
4: "event record" mutation amount is determined by the quality of the sender, the quality and quantity of the receivers, the "epic" scale of the event and the compared similarity with previously heard records
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some explaining for each point, but i think it will be hardly satisfactory for some
1: these events should not be discarded, and can be logged as non-history events, they should not or no longer mutate
2: if no-one knows the story in a world, then how could anyone make an engraving of it? or talk about it?
3: everyone lies... everyone exaderates, its practically impossible to tell a story 100% accurate if you do not read it from a piece of paper
it can have a 0% mutation, or a 99% mutation depending all the variables (is the dwarf just making up a story and as done with most fictional stories bases it on a muse? or does he actually try to tell the tale as he was told it a few years back? is he actually good at doing what he is trying to do? etc) but probably there should be aimed for an average of 5 to 10% per record "generation" (each time its told to the next)
noteworthy would be that engravings and written word themselves do not mutate, they can be a mutated interpretation, or they can be interpretable with added mutation, but the engrave itself will for all of its life tell the exact same story
4: sentient beings however will "mutate" the story each time they tell it, changing details in the story, eroding its base of truth gradually and changing it into what they desire and like or hate and despise to glorify or obscurify the story as it is being told over and over again... taking into account that several sources can tell the same story with different details splitting the story in versions and possibly even entire different stories
as stories are told and told again, and brought by caravans and trade relations to distant realms of the country they will mutate from fact into myth and legend
and really all this can be done with a very simple "rudimentary" simulator in world generation possibly adding no more then a max of 5 to 10% of generating time for actual civilisation generation and since all the stories in df are generated procedurally (not randomly) half of the code required is already in, ready to be used (just generate a base story, add "mutations" to the base story as the dwarves tell the story for the first time then build on top of the mutations for any dwarf hearing it 3th hand and telling it again, drop any generated mutations that are forgotten etc...
side note: i dont want this to be implemented before all the military arch is completed, and culture is added in more, since this would be a part of it