Rem,
You wrote: Why would god allow 99% of Christians and Jews throughout history to believe that the words in the account can be taken at face value if he really meant for them to find hidden meanings in alternate interpretations of words?
Because the subject matter, global vs. local flood, has been unimportant to 99% of Christians and Jews throughout history, up until now. Just as the subject of whether or not God created the world in six 24-hour days has been unimportant to 99% of Christians and Jews throughout history, up until rather recently. (Now most Christians understand that the Hebrew word for "day" which Moses used in Genesis can simply refer to a period of time of undesignated length.) And Just as the subject of whether the sun revolves around the earth or vise versa had been unimportant to 99% of Christians and Jews throughout history, up until Galileo proved the case for "vise versa" in the 1600's. He then did so much to the embarrassment of the religious leaders who then all insisted that the Bible "clearly" taught that the sun revolved around the earth. Today, however, you would be hard pressed to find a single religious leader, or for that matter a single Bible reader, who believes the Bible teaches such a thing. I do not believe that God intended for us to interpret the Bible, or to try to fully understand anything else for that matter, in a vacuum. I believe God has provided us with many valuable tools to help us do so. These things include information provided to us Hebrew and Greek scholars, by historians, by archeologists, by geologists, by astronomers and by experts in various other areas of learning. Today some are saying the Bible is not to be trusted because it teaches that the entire planet was flooded just a few thousand years ago. Of course we know that it was not. This was not an issue until only very recently. So I see no reason why God would have seen fit to clear this matter up before this time. I believe He is now doing so. Just as He saw fit to clear up another misunderstanding of the scriptures in Galileo's day.
You wrote: Peter believed in a global flood.
The verses you cited prove no such thing. In referring to the flood, Peter said "The world at that time was destroyed." You may want to check out the Greek meaning of the word used by Peter which is translated as "world" in this verse. It often carries a far less than universal or global meaning. The Greek word Peter there used primarily denotes an order of things or an arrangement of things. In fact Peter's own use of the word is translated just that way in 1 Pet. 3:3. Elsewhere in the New Testament the word is used on occasion to refer only to the Gentile world. (See Rom. 11:12,15)
You wrote: The flood story is simple: It is a myth of a Global (Earth-wide) flood. That is how people understood it back in ancient times up till now.
I suggest you research this subject matter a bit more before you speak so authoritatively on it. Have you heard of Philo of Alexandria? He was a Jewish historian who lived between the years 30 B.C. and A.D. 45, and is overshadowed only by Josephus as the outstanding historian of his time. And when I say "his time" you may want to keep in mind that "his time" was also the time of both Jesus and Peter. In his work "Questions and Answers on Genesis" Philo wrote that the flood of Noah's day was not a "trifling outpouring of water but an immense one, which ALMOST flowed out beyond the Pillars of Hercules (the Straights of Gibraltar) and the Great Sea." Notice his word "almost." Here Phillo certainly appeared to limit the flood's extent to the Mediterranean basin. So, all of the ancients did not understand that the flood of Noah's day was global, as you seem to have said. The fact is, and this may get to the real heart of the matter, most of the ancients did not even understand the concept of the word "global."
You wrote: Ask any child what the story is about and they'll tell you.
I prefer not to have children explain the Bible to me. For most children don't even know the meanings of many English words, let alone all the meanings of many Greek and Hebrew words. And I have found that sometimes such knowledge is quite helpful in understanding some passages of scripture.