In this particular story, How the World Was Made, the archetype method is used to warn children about an underworld found under springs at the bottom of mountains. I feel that this is a way to keep the children of the society from drowning in these springs. The story usefully employs this method as an explanation of common events and as a cautionary tale. Or, this same archetype could be symbolic. It could represent straying from the normal path of life. It keeps the citizens in line, all still in a form of entertainment, which, as I have said, is a very effective means of conveying a message about, well, anything.
Religion in a culture is necessary to answer questions such as "why?" or "how?". People are naturally inquisitive. They need answers to questions, and it is society's duty to produce these answers. This story answers why for many things in nature and human life. It also answers how the world will end:
"When the world grows old and worn out, the people will die and the cords will break and let the earth sink down into the ocean, and all will be water again. The Indians are afraid of this."
Being given the answer to this "how?", I feel that a society can continue on, not thinking of the "when?". The "when?" just becomes an afterthought after having one of the other big questions answered. Thus the role of religion in a society has been accomplished.