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Thanks sharpn. I'll have to read a bit more history... thanks for the leads.

To not let my lack of knowledge take away from the point of the comment - let me reiterate:

The point is not how Arthurian legends started. The point is King Henry VII got a hero from Thomas Malory's book. And this hero gave him the ambition to change England.

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What evidence I can find indicates it was actually the other way around - that Henry VII co-opted the legend to reinforce his legitimacy, rather than being inspired by it. If anything, the other part of your original point (having strong problems to overcome) is probably more apt for that case.

Anyway, your broader point of having heroes is still valid.

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