I would assume the concept of accepting exaggerations/figures as a literary device to express an idea would be different from the propensity to exaggerate in the face of contrary evidence, is this supposed to be a serious question?
I think, I can't really remember, I was quite tired when I replied to that post. Having a quick think about it makes me believe so.
From the point of view of Yiddish so called "chosen ones", blatantly lying to the goyims face as shamelessly as possible is a comedic exaggeration for emphasis.
A culture that practices deception even in a seemingly minor form for any purpose becomes one that encourages it.
At one point does it stop being guzma and start becoming chutzpah?