This is a really good question...When I think of all the countries, nations, and peoples in existence or have existed; including the Native Americans, the ancient Sumerians, and the Mayans and Incas, the Chinese and Indians (the people of India) are at a dead tie. The two contries have existed in ancient times and still exist today and so have compiled perhaps the most impressive portfolio of folktales. For the Chinese, the story of Monkey and the Yellow Emperor or Huangdi come to mind. For India, it's the Bhagavad Gita and Mahabharata in which the story derives--the lengthiest of them all. All are mystical, magical and mysterious in their own right and enfused with morals and ethics. So, as far as the title of best continent for folklore goes? Asia all the way!
So instead of seeing another remake by either Disney or Dreamworks, I hope that other movie production companies introduce some of the other folktales and legends into the fold. One movie in particular that I found very entertaining is "Brotherhood of the Wolf." It's a french movie and very good. Check it out whenever you get the chance!