Poetry in Storytelling?
Yes, poetry does have a place in storytelling. How? Why? Because poetry deserves a voice just as any story does. In fact, stories woven through poetry are the most memorable, most evoking.
Take a moment and check out these fantastical, imaginative children's poems. Read them out loud, wander through the words. A story does not have to be bound to a page by paragraph to paragraph. It can be a vocal transaction, flying between teller and listener.
Neils Gaiman's "Instructions"
Shel Silverstein's "The Missing Piece"
Jon Scieszka and Lane Smith's "Science Verse"