I wish to offer a flavor of Buddhism which avoids both (1) literal belief in baseless myth, unfounded superstition, primitive magic and historical ignorance, and (2) the opposite extreme of stripping down old teachings and practices to such a degree that the “baby Buddha” is thrown out with the bath water, and many worthwhile and challenging teachings are lost due to being wrongly labeled as myth and magic. Many ancient legends maintain great value even if wholly or partly ahistorical legends, many of our most potent and challenging teachings do not conflict in any way with modern and scientific understanding (in fact, many may be seen as supported by modern discoveries), and many of our most beautiful ancient customs and practices have understandable value and meaning even in this day and age.
I believe that it is possible to maintain beliefs that are freed of superstition, demanding that there must be some credible evidence and basis to support which claims and suppositions about reality are true. More is demanded than simple blind faith in the assertions of an ancient book or teacher, even the purported words of the Buddha himself (assuming his actual words can even be known). It is time to recognize that many of the beliefs of ancient men and women, even of the Buddha himself, may have been the narrow and ill informed views of people limited to knowledge as it existed in centuries past. For some of us, there is need to discard fictions and foolish suppositions in the light of modern evidence.
On the other hand, we need not go to excess in rejecting all that is old merely for being old and hard to fathom in ordinary thinking, and we should not make the mistake of turning Buddhism into primarily some form of therapy or relaxation technique robbed of many ancient riches. Thus, I propose that we maintain the best of all possible worlds, what may be called a "Religious Secular Buddhism" which represents one "Third Way" to bridge some issues and difficulties facing Buddhism in the West.
..... [For example] We might maintain incense simply for its role in creating a psychological state of removal from worldly concerns in a certain space and time through the olfactory sense. One might maintain a statue or painting or old legend (even while recognizing that the story may have no legitimate historical foundation) as a reminder of a certain teacher or valid teaching or imparted truth. ...
On the other hand, we might jetison other claims and beliefs [such as in prayer services and the magic incantations known as "Dharani"] as baseless beliefs primarily employed as a kind of magic incantation absent showing of some other role or proof or real worldly effect. (We might recognize the retention of some practices for placebo effect, which has been show to actually exist and be a recognized too). We might abandon or remain skeptically agnostic on mechanical views of "rebirth" for lack of proof, and also out of a belief that such a system is not central to forms of Buddhism centered on "this world" practice here and now.
We continue to call this "religion" only in the narrow sense of being a teaching of the sacred and wondrous in all of life, combined with a willingness to look beyond many of our common sense assumptions about reality and self-identity. Apart from that, however, the superstition and silliness of traditional religious beliefs should be cast aside.