Interesting and very clever.
Our limited time on Earth makes us tell stories, we tell them to escape our mortality, but they have nothing or very little to do with the truth, however you want to define it - because our language is so limited. Literature is not life, it can never be a simple recounting of life, which means we can live without it. But literature, stories, give us something extra - an added value to life.
Bichsel has a witty mind and is very original.
I like his thought that literature can spring from our unwilingness to talk about the mundane, about the everyday stuff life is made of, and I will remember his wonderful sentence "stories are a way of calming the world".