It is untrue that fiction is nonutilitarian. The uses of fiction are synonymous with the uses of literature. They include refreshment, clarification of life, self-awareness, expansion of our range of experiences, and enlargement of our sense of understanding and discovery, perception, intensification, expression, beauty , and understanding. Like literature generally, fiction is a form of discovery, perception, intensification, expression, beauty, and understanding. If it is all these things, the question of whether it is a legitimate use of time should not even arise.
