Reverend wrote:
At this stage, the point is that this is what the Grey Council believed. To the Minbari, souls are very real and absolutely CENTRAL to their beliefs that informs their view of the entire universe (you'll hear about that later) so it's something they take VERY seriously, even if most humans think it's utterly ludicrous.
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In the comic that shows what Sinclair was up to concurrently with this episode, he's informed of what happened, as well. Later, talking with President Clark privately, Clark pretty much says, "Yeah, we thought it was a bunch of bullshit, but it got them to stop killing us, so we weren't exactly going to argue."