Well, I say yes. Sure, it was a low-level encounter early in the career of a character who would end up on the campaign world's throne, but it can still be the thing everyone talks about. The day the future king killed a rid the kingdom of rats with one mighty swing. If it's going to be mythical, then lay it on thick.
And that got us talking about the gaming session as a STORY. Now obviously, I'm well-known as one of those filthy Narrativists who sees role-playing games AS stories, and puts story well above simulation and adherence to strict rules, but I'm not talking about that. Over the course of any session, there will be many moments that break the illusion of an immersive world. The players are always joking around, of course, and saying things that are out of character, but there'll also be crazy dice rolls or even game rules that will create illogical moments of both success and failure.
And there's the realization. The game isn't what's really happening in the game world; it's how the story was later TOLD. Probably by the characters themselves, possibly by witnesses, but it's one way to explain the gaming experience, and much closer to what's actually happening. After all, what's an RPG session if not a bunch of friends sitting around a table laughing and telling tall tales?
All very interesting, but how can that notion be used in games? On the surface of it, it's a magical No-Prize that helps explain away inconsistencies. Instead of having a dispute at the table about the name of some obscure NPC, or whether a house rule was changed, or what have you, gamers are invited to chalk it up to the story as (badly) told. But enterprising gamers can be more proactive with it. If it IS just a story being told, then Narrativist tricks can be inserted into games that don't normally use them (oh, I done and tricked you now): Flashbacks, flash forwards, rewinds to reveal new information that changes the objective present, calling characters out on their lies and rewriting scenes, all sorts of meanwhiles and elsewheres.
The "Tale" could even become the basis for a replay of an adventure, this time telling the "truth". How would that gaming session look with the PCs more flawed, and the dangers not quite so dangerous? Have an extra 20 minutes at the end of a session? Run a scandalous replay where everything's really, really mundane. It's a hoot!
But I see I've gone too far...