Is reading fiction really pointless?

As-salamu alaikum. I got into a pretty heated argument with a friend lately. He says all fiction is a waste of time. I disagreed - I said if someone gains good lessons or benefits from fiction, what’s the harm? He kept insisting fiction is just silly “what ifs” and completely pointless. He then invited me to a voice call where an “Ustad” he follows said poetry and literature are from Shaitan. I replied some poetry can be harmful, but not all of it. He refused to accept any benefit from fiction and started shouting. That’s when I realized this wasn’t a calm discussion anymore. They demanded Sharia evidence, so I shared evidence supporting permissible poetry and literature. For example, Tafsir on Quran 26:227 explains that poets who believe, do righteous deeds, and remember Allah aren’t blameworthy. Also there are authentic ahadith noting that some poetry contains wisdom (Sahih al-Bukhari), and the Prophet ﷺ approved Hassan ibn Thabit’s poetry and responses in defense of the Prophet ﷺ. I accept that if any poem or story distracts someone from remembering Allah or leads to sinful behavior, then it can be impermissible. But claiming every piece of literature is bad ignores a long Islamic tradition of scholars and writers who used poetry and prose for wisdom, teaching, and spiritual reflection - names like Imam al-Shafiʿi, Imam Abu Hanifa, Imam Malik, Imam Ahmad, Hassan ibn Thabit, Imam al-Tabari, Ibn Kathir, al-Farabi, Ibn Sina, Ibn Rushd, al-Ghazali, and Abdul Qadir al-Jilani come to mind. Benefits I believe fiction can bring (and I shared research on these) include: improving imagination and creativity, expanding vocabulary, developing empathy, strengthening critical thinking, improving focus, reducing stress, helping understand other cultures, boosting memory, encouraging moral reflection, and improving storytelling/writing. My friend denied all of this and yelled instead of discussing. So I’m asking you: Is all fiction truly a waste of time? Or can it be beneficial depending on the content and the person’s intentions and habits? What do you think - from both a practical and Islamic perspective?