Shakespeare was, as Caesar says of Cassius, "a great observer," able to see and depict patterns of events and character. He understood how politics is shaped by the clash of men with various colorings of self-interest and idealism, how violence breeds violence, how fragile human beings create masks and disguises for protection, how schemers do the same for advancement, how love can grow out of hate and hate out of love.
Dare anyone say that these insights are irrelevant to living in the real world? For many in an older generation, the Bible and the Collected Shakespeare were the two indispensable books, and thus their sense of life and history was shaped by the best and best-told stories. And they were the wiser for it.
Literature abstracts from the complex events of life (just as we all do in everyday life) and can reveal patterns that are like the patterns of events in the real world. Studying literature can give us sensitivity to those patterns. This sensitivity to the rhythm of life is closely connected with what the Bible calls wisdom.