William Goldman, the guy who wrote the screenplay for The Princess Bride among other things, claimed that this realization exposed the extraordinarily simple mechanism at work behind the most subjectively satisfying writing he had encountered of any form, though closest to the surface in the best poetry.
further reminds me of another observation, not from Goldman but someone else I can't recall, to the effect that a poem is "a machine made of words."
I am strongly on board with the notion that everything that we call knowledge or the human experience is all a lossy compression algorithm, a predatory consciousness imagining itself consuming the solid reality on which it presently floats an existence as a massless, insubstantial ghost.
Its a fun and smart read, but doesn't devote more than maybe a chapter reflecting on this revelation, even though Goldman, who wrote it in all caps in the book (which is why I wrote it that way in my post), considered it his most important or influential observation.