I don't know what you mean by "people" here. This may be true for the Jews or poorly educated/ignorant Christians, but no Christian that is highly conscious of their religion actually takes anything in the Old Testament as literal truth. It is the mythology of Christian faith. Like most myths, probably rooted in anectodes or other (often "pagan") legends but often wildly exaggerated. Meant as a teaching, not account of history.
this territory is moderated
I know many Christians who believe in a literal interpretation of the stories of the old testament. Most of them think more about Adam and Eve in the garden of eden than the implications of Moses coming down from the mountain with the ten commandments, but they exist and they are many.
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