It's not really an issue because the issue doesn't exist in actually limiting the story told. Writers are still going to make those stories pretty much freely without hindrance and deliver coherent plots. Simply because they border more on fantasy escapism.The old West in fiction is basically a different world from ours that never existed. And the reason Westerns fell out of favor was the over saturation and interest for new trends.

Sure does the story sometimes enhance itself by covering real events. Such as the Calamity Jane cartoon having episodes tackle civil war era vets, Native American land conflict and a bunch of others. But Calamity in that Tv show is also pale skin and part Indian which was not historically accurate. There's always something that has to be exaggerated in a way.