Lots of scholars have lots of views on how the scripture came about and I'm not at all opposed to the idea that it was a process that developed over a very long time. That being said, viewing the scripture from an anthropological basis alone (and I'm not suggesting that's what Levine does) is an incomplete way of viewing it. Likewise, I think that viewing the scripture as divine inspiration handed word for word from God to Moses is equally incomplete (and likely incorrect as nowhere in my studies have I found such a claim in the scripture).
Is the Bible a story? Yes, structurally. That method of conveying ideas over long distances has been the primary way man has operated since the dawn of time.
Is the Bible mythology? No. The Bible DOES, in places, incorporate allusion to myth and components of mythological method but it does so as a way of engaging those listeners (or readers) that are already familiar with mythology. It's also important to remember that a myth isn't "a lie", it's just a way of conveying an idea.
Is the Bible history? Yes, kind of. There is a historical theme to the Bible but the purpose of scripture is not to teach history as much as it is to teach why history matters. The idea being conveyed is that an understanding of history allows us to better understand the present and apply principles that will improve the future.
I tend to think of the Bible as a crucible. In a way, I see it as a tool that allows diverse ideas to be dumped in, melted down to their basic components and refined into something new, something more useful and, if done right, stronger than the components were individually.