Maharal, Ramchal, Sefer HaBris and a few other Acharonim say that Chazal in Pesachim were not speaking about material phenomena, but instead about mystical phenomena. Chazal were therefore not incorrect.
However, Rav Sherira Gaon, Rav Hai Gaon, Rambam, Rabbeinu Avraham ben HaRambam, Tosafos Rid, Rav Eliezer of Metz, Rosh, Ritva, Rabbeinu Bachya, Rabbeinu Manoach, Rabbeinu Yerucham, Akeidas Yitzchok, Maharam Alashkar, Radbaz, as well as Rabbeinu Tam, Ramban and Ran, all say that Chazal were speaking about the physical sun changing direction and going behind the sky at night. There is NO Rishon who says otherwise. With the exception of the last three, all the Geonim and Rishonim followed the plain pshat of the Gemara, that R. Yehudah HaNasi conceded that Chazal’s view was incorrect (the last three hold that Chazal were correct and that the sun really does change direction and go behind the sky at night. But I don’t think that anyone today would agree with that).
Amongst the Acharonim, the poshut peshat of the Gemora was also followed by Ramak, Maharsha, Pri Chadash, Pachad Yitzchok, Maharam Shick, Rav Hirsch, and others. So this is clearly a legitimate, even mainstream, view in the mesorah.