Setting, Character, and Plot

So I thought about this today: the laws in the world of a realistic story can reflect the laws of the real world. Setting, character, and plot are all present in real life too, and they all influence each other. There's a reason why people don't hold birthday parties in mortuaries, why people get stressed out when they're living in a warzone, and why a warzone doesn't looks ruined after a war. Events, environments, and people are all interconnected. If one is changing, then there's a good chance another one is changing too. This relationship expleins the necessity for art in the video game "The Sims". If you give your person too dull of an environment he will literally break down and cry. I'd never really though of how much that aspect of the game holds true in regars to the real world.
There is also the realtionships between events, between people, and between environments. The ocean is constantly interacting with the pine studded shore. The man in solitary confinement is growing lonely. The war is ruining the birthday party. There are three dimensions to everything and those dimensions interact in all ways possible, and always.
I would even venture to say that there can be no person/place/action without place/person/action and action/place/person. This trinity is perhaps even as fundamental as rock, paper scissors, as Heaven, Hell, and Earth or as Bulbasaur, Squirtle, Charmander. Perhaps there is even an analogy to be made, that every change spawns two more changes. All things fork out. Perhaps this forking is the essence of freewill and the soul of consequence: there is always a good and a bad reaction. But there are actually far more than two reactions, well, there are three since character affects character. But there is certainly more than one character setting and action. But there are three characteristics in which we group the objective world (in literature).

What do you think?