This. I write high fantasy adventures for my job, obviously I've never been to other realms or had threesomes with half elf half harpy women. But I do include smaller experiences that I've been through in their lives to ground the epic stuff in a more realistic world. I draw inspiration a lot from my own life and interactions.

I mean it's entirely up to the author what they want their book to be like, but yeah things like that will narrow the audience and readership for sure.

Reading (primarily fantasy/scifi) improved my vocabulary. It also can teach about other people's experiences and perspectives in an enjoyable way. Therefore can teach empathy and compassion. Yes, even fiction reading is beneficial.