I can tell you one thing I have finally faced through — the Arthurian cycle and practically all lasting and deep-seated folklore is a mixture of profundity and childish nonsense. If you keep the profundity and throw out the nonsense, some essence is lost. These are dream stories, fixed and universal dreams, and they have the inconsistency of dreams.
What It Means
This is a placeholder explanation generated by the low-overhead model. It interprets "I can tell you one thing I have finally faced through — the Arthurian cycle and practically all lasting and deep-seated folklore is a mixture of profundity and childish nonsense. If you keep the profundity and throw out the nonsense, some essence is lost. These are dream stories, fixed and universal dreams, and they have the inconsistency of dreams." in the context of "Appendix, letter to Elizabeth Otis (June 1959)" to mean that wisdom is timeless.
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About John Steinbeck