Flashback to me at fourteen: "I'm a fairy? How fucking lame." Bill tries to explain to Sookie about how "Fairy" is but one of the names of the thing she is, but of course they all sound about that stupid. The internet is mostly just those words, in different contexts. Back when they had bookstores, it was a lot of that, in big fat paperbacks with Michael Whelan covers. Also Etsy, Etsy is full of fairies. You can spell it a variety of ways but all it really means is "People that look human but aren't human, that will fuck you up." You might also know them as "aliens."
Which is very True Blood, if you think about it, and another iteration of one of my favorite things about the show: There is no Them, ever; not even the Gods are ever Them. Aliens would by definition come from somewhere other than here; the Fae were here first. They define "here." And all the stories, from changelings and Communion to their long slender bodies and their great big eyeballs, are put off on alien abduction scenarios because A) We can't imagine anything that strange being so close to home, or so central to our longings, and B) We can't stand the idea of being out here alone.
It all comes down to the same exact story, but with the primary difference shifted from "us/them" to "in/out." Vampires are dead rattlesnakes animated by human blood and magic, shifters are who-knows-what, Weres are the most earthly beasts of all, and the Fae have Nature Herself running through their veins. There is no Them, no aliens, because it's all us. Stuck on a rock together.
Which is good if you're strong, because then you have access to everything: No territory is denied you. You are invited into a complete and shining world. (That's what V is about.)
But it's but bad if your areas of blindness or weakness or sadness -- Steve Newlin, Arlene Fowler, Russell Edgington, Tara Thornton -- can't handle it, because then you're projecting your lacking parts and your sad parts and the areas of your blindness onto the world, which puts you at odds against your own existence. The broken world is a terrible place, full of shadows and shame and clicking bugs and secret doors opening on sickness; you'll never understand that you're the one making it that way. (That's also what V is about.)
As she always expected, then, Sookie is an alien. Bill says only mostly, because one of her female ancestors -- on Grandpa Earl's side; this was all very different in the books -- um, "coupled" with a Fae. Because BTW, in addition to being lame and aliens, sometimes they also raped you a little bit. Bill explains that he got all of this out of a lady named Claudine, and explains her Garden thusly: "Bon Temps Cemetery. Only it... It was someplace else, and it was day. But it wasn't painful, it was beautiful." Yes, there was a pond, and he came out of it, though the water didn't sparkle and he couldn't even touch it. Sookie, of course, is thrilled to be talking about herself.