superversive has
such a good quote from Chesterton today.
It begins: "But people must have conversation, they must have houses, and they must have stories. The simple need for some kind of ideal world in which fictitious persons play an unhampered part is infinitely deeper and older than the rules of good art, and much more important."
I do think that the definition of literature is changing a great deal, but the truth is, people must have stories. Why people must have stories is another fascinating question, and definitions keep changing.