Any intelligent individual should be able to weed out the exaggerations to create an analogy for the Jutsu, stat etc. It's a very common literary technique. For example, DB states that Hebi Sasuke has God Speed, which can't obviously be taken as a literal fact, but as a metaphorical one, that he's extremely fast, as his speed is exaggerated to create a point as to how fast he is.
Or that Amaterasu is as hot as the surface of the sun. That is obviously, completely untrue. But it shows how hot the black flames are that nothing in Narutoverse can compare to their torrid elemental nature. Hence the only thing left to compare it to is hell and then the sun.
For example, when someone states that they will 'travel to the ends of the earth' for something, then it shows their dedication. By and by, it depends. If it's backed by the manga and if the reader is not a complete idiot to grasp the hyperbole, then it becomes fact. If however, the manga outright contradicts it, like in case of Jiraiya's rather ambiguous SM mastery - or half mastery - or the story of how Madara got his EMS? Then it falls drastically short, and at best, can be considered a kind of ironic play on things.
That's the best way I can put it.
