If you don't mind me slotting in here, I'm planning on studying Theology so this is a really interesting discussion for me.
As far as my personal view goes: I don't know. As far as we can speak about the Bible as a historical narrative: parts of it are true (and parts of it are not). The first important thing to consider when we speak about the Bible is that it's been translated more times than I can count on my fingers and toes (I have all four limbs in tact). That means going from scriptural to Roman alphabets, which presents us with translation issues almost straight away. After that, we have to consider the fact that even in English, we have multiple versions. I've studied three alone in various contexts without even having been to university yet. Now, we have a problem with interpretation.
After that, we have to consider certain other parts of the Biblical narrative starting with the Pentateuch (first five books of the Bible). Genesis and Exodus live up to a number of difficulties in interpretation. For a very potted tour: Genesis mentions the Philistines, who wouldn't have been around at that point, whilst Exodus gives us 430 years of supposed oppression of the Israelites by the Egyptian Empire but doesn't go particularly far into it. Additionally, Moses is actually an Egyptian name, which means that the inconsistencies in Exodus can't be explained by 'Israelite fantasism' (Diarmaid MacCulloch, A History of Christianity). Judges fares a little better, and religious historians are generally able to slot it into the time period surrounding 1200BCE without too much difficulty. Personally, I find the final three books of the Pentateuch really intriguing because of the mystery surrounding the Ark of the Covenant.
The New Testament holds up a little more easily. The language is closer to modern languages (such is the passage of time) which means there are fewer (which isn't to say there are none) issues with translation. Additionally, what we can see of Christian philosophy surrounding ethics, morality and divinity can be traced to other philosophies (in particular, Graeco-Roman philosophies), which means that we're able to map out philosophical influence in the meta-narrative surrounding the text. This, then, gives us an enhanced idea of what exactly is going on in the world at the time the texts were written (or, indeed, the period the texts are reflecting) and that means it's easier to hold these texts to scrutiny. For the most part, they do fit.
On a more general note, it's important for people who don't believe not to dismiss the Bible. The Bible may principally be sacred scripture, but it's also a historical text. As a text which supposedly bears witness to real events, it has a responsibility (which it largely upholds) to fit the occurrences surrounding it. As such, The Bible can be read and studied as a real historical narrative if supplemented with the right materials - and if you're looking to discard Christianity as a fairy-story, you have to know which parts you're able to discard or you look like a bit of a gump!