It depends on the context. In some cases, it can be unethical as it may involve deceiving others or spreading false information. For example, if it's used to manipulate someone's emotions or gain an unfair advantage, it's wrong. However, in fictional writing or storytelling for entertainment purposes where it's clearly marked as fictional, it can be acceptable as a form of creative expression.
One consequence could be damage to someone's reputation. If the faked story involves a particular person, it might make others think poorly of them. Another is the spread of misinformation. People might believe false things about sexual behavior in general. Also, it can lead to legal issues if it involves slander or defamation.
One benefit is that it can improve your vocabulary. When you read different stories, you encounter various words and phrases. Another is that it enhances your imagination. As you read a book story, you create pictures in your mind of the characters and settings. Also, it can be a great form of relaxation. After a long day, getting lost in a good book story can relieve stress.
It's more engaging. People can flip through the pages like a real book, which gives a more immersive experience compared to a regular digital document.