My former college English teacher wrote this great post about the importance of storytelling, even for adults. I was so glad to find this post, and realize that I'm not somehow sinking into postmodern thought by advocating teaching children by using narratives and fictitious stories.
He points out (and I agree) "I believe we love stories because we were hard-wired by God that way. He put a love for stories within us because He Himself is the Great Storyteller, the Master Author who wrote the ultimate Story, the Creator who designed us in such a way that we cannot help but be captivated and changed by the greatest Story ever told."
Have you looked at your Bible recently as a great literary work? Theological narratives divinely inspired by the Great Storyteller, poetry that reaches to the very depths and heights of mankind's emotional experience, great characters, outstanding plot, all pointing to One Character -- the Hero of all time!