As somebody a little lighter on the tech side of the internet, but very interested in the entertainment side (producing and participating), I think that unless you are at a supposedly reputable news source, you should consider the internet a form of entertainment.
Certainly movies have to explain they are fiction, but this is usually right before the Panaflex logo, right after the caterer. If there were a prologue before every movie I saw telling me that this was fabricated by an armada of writers, I'd read even more.
I remember when I first stumbled onto the BW site, and I promptly googled (or more likely Altavista'd) the whole area to death. And there was nothing about a witch anywhere but the BW site. That is the beauty of this whole internet thing. You can check this stuff out for yourself. And then learn even more. Apparently there is a hill in Burkittsville that objects appear to roll up. Now that is cool.
As for somehow damaging the city, or readers, or people...that is absurd. The people are fake. The readers are sheep and unless recently fleeced by somebody else for their $7.50, they have their immense woolly bodies to protect them (except from fire...). And a city is just a city. Miami is full of drugs, New York is full of cops, LA is full of movie stars, and Burkittsville is full of ghosts.
I am my own home. - Banana Yoshimoto