How does the point of view affect what we know about the situation?

After an introductory paragraph of omniscient narration, the point of view shifts to be largely that of the villagers themselves. We know this because the first sentence of the second paragraph ends with the words "of course:"

The children assembled first, of course.

The "of course" indicates insider knowledge: we are learning about this odd ritual from people who are so completely familiar with it is assumed everyone knows the unwritten protocols.
We could imagine, if this story were filmed, the "videocamera" of the first paragraph filming from a distance, perhaps with a voice-over. For the second paragraph and onward, the camera would have zoomed in to be among the crowd, up close and personal.
The fact that we are experiencing the story from the point-of-view of insiders means that we only share their fragmented incomplete knowledge and understanding of this ritual. It is so ordinary that they wouldn't think to stand back and research it or try to understand it in a more global way. It just is what it is.
Being closer to the characters also raises the emotional intensity of the story. We may not know all the facts of how this ritual evolved, but we feel the fear it evokes.