Is there a middle ground of interpreting the bible? Not just literal or false?
No middle ground, at least that's not the term I would choose. Different 'levels' of understanding, yes!
Obviously, Bible prophecy that's specific for a certain group is not about all peoples. All may eventually come to understand as God allows though.
What I'm saying is, that regardless of the level of understanding a Bible believer is at, it should always... be in agreement with His Holy Writ.
So there's no room for a Burger King type thinking with God's Word; we cannot treat His Truth with a "have it your way" type of mentality and expect Him to open His Word up to us in understanding. If we listen to men's doctrines instead, we may expect Him to close off our understanding the more we refuse to listen to Him only in it.
This begs the question of, "How do we understand when God is being literal vs. being metaphorical, in His Word?"
God's Word is always about literal Truth, that's for certain. But it's the method of delivery that can cause many to be confused in it. One's standing in Christ can also cause that, as He can open our spiritual eyes and ears, or He can close them, depending on how we approach Him and... His Word.
When Solomon was led to say there's nothing new under the sun, what has been shall be again (Eccl.1:9), God was truly giving us a major Lesson in how to interpret His Word. It's a lot about the repeat of history, in patterns, over and over and over, again.
This is one of the main reasons we are to study ALL of God's Word for ourselves, simply because many events that occurred in OT history serve as 'patterns' for what's going to come in the future. This is one of the ideas Paul was teaching in 1 Corinthians 10 about "ensamples".
Here's an "ensample":
Jer 23:5-8
5 Behold, the days come, saith the LORD, that I will raise unto David a righteous Branch, and a King shall reign and prosper, and shall execute judgment and justice in the earth.
6 In his days Judah shall be saved, and Israel shall dwell safely: and this is his name whereby he shall be called, THE LORD OUR RIGHTEOUSNESS.
7
Therefore, behold, the days come, saith the LORD, that they shall no more say, "The LORD liveth, Which brought up the children of Israel out of the land of Egypt";
8
But, "The LORD liveth, Which brought up and which led the seed of the house of Israel out of the north country, and from all countries whither I had driven them; and they shall dwell in their own land."
(KJV)
The day will come when it will no more be said how The LORD brought the children of Israel out of the land of Egypt, but how The LORD brought the seed of the house of Israel out of the lands of their scattering, and brought them back to their own land. That last saying is still future, because the "house of Israel" is specifically about the ten lost tribes returning, which has yet to occur.
Is that a pattern comparison like the days of Moses when God parted the Red Sea, and the children of Israel went over dryshod? Yes, but it's for the time of Christ's second coming instead.
And thus the plagues of Revelation and God's two witnesses to appear in Jerusalem, are all OT type patterns of history. The endtime Babylon of Rev.17-18 is also a pattern from OT history, even the very words from Isaiah 21:9 that "Babylon is fallen, is fallen" being repeated for the end. What our Lord is doing by repeating those things is to point us back in study of Old Testament histories and prophecy withing them that has never yet come to pass. By the time we get into New Testament study, we should already be familiar with those patterns of history and prophecies.