Giles: There is a fringe theory held by a few folklorists that some regional stories have actual very literal antecedents.
Buffy: And in some language that's English?
Oz: Fairy tales are real.
Buffy: Hans and Gre- Hansel and Gretel?
Xander: Wait, Hansel and Gretel? Bread crumbs, ovens, gingerbread house?
Giles: Of course, it makes sense now.
Buffy: Yeah, it's all falling into place. Of course that place is nowhere near this place.
Giles: Some demons thrive by fostering hatred and, uh, persecution amongst the mortal animals. Not by destroying men but by watching men destroy each other. Now, they feed us our darkest fear and turn peaceful communities into vigilantes.
Buffy: Hansel and Gretel run home to tell everyone about the mean old witch.
Giles: And then she and, probably, dozens of others are persecuted by a righteous mob. It's happened all throughout history, happened in Salem, not surprisingly.