Sounds like the Chinese variant of Diogenes at work, I'd love to hear more details - was this something that really happened or a clever tale constructed later? If those people were real, what else did they produce?
Very true - although I'd add an "almost", at least in a few cases, authentic letters - or for the modern era, recordings - can at least root the fundamentals in something that actually happened. (Although even then, whatever gets tossed around as a parable/proverb will be heavily embellished and/or stripped of context, of course).