"Monty Python and the Holy Grail"

I thought this movie was really funny but a little over the top when it came to certain scenes.  When the men were collecting the dead and another man was trying to hand off an old man who wasn't dead yet and in the end someone knocked him out, I felt that was a bit cold-hearted even though the situation made it seem funny.  Another scene was when King Arthur came upon a dark night that fought him until he was nothing but a torso, I'm a bit squeamish when it comes to blood so seeing all his limbs fall off and the really fake blood spurting out, I couldn't help but cringe a bit.  But I think overall the movie was humorous.
My favorite part in the entire movie is when the king pretends to ride a horse and his servant makes the sound of a horse's hooves with coconuts and in the background a really adventurous song is playing.  Also when King Arthur comes upon a man who at first he believes is an old woman and then this man exclaims that he is being repressed.  But is there an overall point that this movie is trying to convey?  The story line didn't really seem to be really clear.  Also the setting of the story was confusing because at first it seemed as though it was set in the past when kings did rule.  But then there were a couple scenes that showed people from modern society.  Then at the end the police arrested King Arthur.and it was brought to attention that the camera man was a person present when the police turned off his camera.  Were they all just role playing the entire time?  Or was it intentional to have two different times at the same time?