I don't quite understand why people seem to want to impose realistic expectations on a fantasy game? It's a fantasy story - OF COURSE it's going to be dramatic, epic and sometimes over the top. It wouldn't be interesting to play otherwise.
It is interesting when you go into the Prancing Pony and everyone is normal except for the one dangerous-looking fellow in the corner. Who is he? What does he want? Why does he seem so interested in a group of hobbits?
If you go into the Prancing Pony and the bartender is a half-kobold Oathbreaker paladin who has been polymorphed into a giant frog, and she is serving drinks to a roudy group of Dragonborn bard/monks, and there is a group of trolls performing a human sacrifice in one corner of the room when suddenly a portal to the abyss opens and fey start pouring out into the tavern, and before you can say "what were fey doing in the abyss?" a purple polka dot skeletal dragon lich bursts through the wall and starts eating everyone... well, that doesn't actually make the story richer and more interesting for a lot of people. It just makes it campy.
