Narcissus is a term used to describe people who put themselves in the shoes of others. When you read fiction, we are better able to sempathize with and understand those around us. I would also challenge you to think of great or memorable stories that don't have people in them. It reminds me of a bit of photography. They're this remarkable, frozen story that you can immerse yourself into.
Also: are the most memorable stories less likely to be true?