Yeah, the 2nd episode helped develop the mythology. But so far the show is ALL mythology. They're eventually going to have to get down to telling single stories.
And I can't help but wonder how thought out it is - do the characters age? How long have they been there? They have technology, so it's not like the town is frozen in time. Do they die? Give birth? Haven't outsiders noticed that they don't die or give birth?
Do characters that were dead when the curse started live on or are reborn in the town?
Is child Henry really the Queen's father? So Snow White's daughter gave birth to the evil queen's father - making Emma the queen's grandmother?