What place does literature occupy in society? What purpose does it serve? Why does it exist? Does literature represent something (desires, fears, etc.) for either the reader or the author?
That's the thing. Literature, storytelling, has been around in one form or another since humans first crawled out of the sludge. There were storytellers back when everyone's role in the community had some purpose necessary to the survival of the community. So, yes, somehow, I think literature is as necessary to our survival as food, water, shelter, and air.
True, but there's a difference. Movies can be enjoyed by the illiterate; books cannot. "Hero is pursued on motorcycle through city streets" is a description, not literature. The film scenes that may result will be quite different.TV, radio, and movies all start with an idea that is transmitted to others by the written word. The Greeks disseminated myths and attitudes to the masses not just through the written word but through plays, but the plays still had a writer.