No I mean knowledge, with no public education at all men and dwarves knew little of anything but how to survive in the wild and how to fight. Most probably weren't encouraged to become scholars. The elves live long and had vast fields of knowledge. But I don't think they had any need for fiction like we do today.
We use fiction to escape reality, the elves created statues and monuments in memory of people to honor them. Do one honor a falling warrior by painting a portrait of him? Actually in a lot of ways they live more in reality in the fictional world of middle earth than we do today in our modern world.
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