I read something similar to this while researching the concept of catharsis or purification in Aristotle. Basically, if you identify with a character in a play, which is often the case, you can "experience" the same events as the character and learn the same lessons. That's why the movies are so emotionally engaging. So they can make us laugh at times, or cry, or get angry, etc. The point was always to reward the morally good character and punish the more "evil" character.

I haven't read his Poetics though.

I think "identify" is the key word here because, in a certain way, I would dare to say that this is a concept that also applies in psychology, since humans tend to identify with the things they love. Fans identify with their favorite team or with the celebrity of the moment, mothers with their children, and lovers with each other. Thus, they can feel what the other feels.

It is a deeply interesting topic for me.