Literature: detriment or necessity to Christianity?

In casual conversation with a 9th grade student, the book series Harry Potter was brought up. This series is very special to me, as well as possessing renound literary merit. Of course, I was excited to discuss these books with the unsuspecting girl (I am an English teacher, so sue me). However, I was greeted with this disappointing opinion: "Harry Potter shouldn't be read by Christians." My jaw dropped...not that this was the first time I have heard this, but I was appalled by the fact that someone other than Dr. James Dobson actually believed this. I began to bring up Christian themes, biblical allusions, etc. but the girl was convinced: "There are no Christian values in Harry Potter." I would like to also add the small detail that this girl had never read the books. But had watched the movies. Just saying.
This conversation caused me to think a lot about the role that non-Christian literature plays in faith. I will try to explore this issue from both sides, though it is obvious that I am biased. First I will try to go from Dobson's perspective. There are many verses in the Bible dealing with sin, sinful matters, etc. For example, 1 Timothy 6:11 tells us to "flee from these things (money, temptations), you man of God, and pursue righteousness, godliness, faith, love, perseverance {and} gentleness." Furthermore, 2 Timothy 2:22 states, "Now flee from youthful lusts and pursue righteousness, faith, love {and} peace, with those who call on the Lord from a pure heart." I think that most would agree that these Scriptures are pretty self explanatory. We, as children of God, do not need to engage in sinful behavior. The key words here are "flee" and "pursue." The question most critics would pose is "What does it mean to flee youthful lusts?" Doesn't that mean to run as far away from sin as possible? Therefore, in approaching literature with questionable language, sexual content, etc., would it be appropriate, in pursuit of holiness, to avoid these novels?
Now, the opposing side. Looking at the same Scriptures, one could pose a completely different arguement. The question I would ask is "What defines youthful lusts?" Is it content itself, or our engaging in the content? Is it knowledge of the sin that we need to avoid, or activity in it? Now, don't read me wrong, I am not saying to go and rent pornographic material for learning purposes. But I think that the Holy Spirit has given us discernment to know what we can and cannot handle. For example, the novel Atonement. There is an extremely risque part where the two lovers in the book have sex in the library. I would like to make 2 points from this example. 1) Reading this part/this scene did not cause me to lust or to want to emulate this behavior. 2)This book has a Christian theme that cannot be argued, and this scene was much needed to allow the reader to fully grasp the theme of "atonement."
The Bible commands us to be in the world, not of the world. Yes, we are called to be holy, blameless, above reproach. We should flee from anything that causes us to stumble. We should flee from sin, period. However, we cannot forget the first part of this phrase, "IN the world." Bottom line: the world that we live in uses foul language. People use drugs. They drink alcohol. They have sex outside of marriage. They have man to man and woman to woman relationships. Christians should not pursue these things, but can we make a difference at all if we have zero understanding of the world we live in? I need to be able to have a conversation with people who are in this world. I need to be able to not appear as a "holier-than-thou." There are no censors walking down the street; therefore, I do not believe there should be any censors in literature. I would like to end with this thought: I read my Bible regularly. However, one of the most life-changing God moments I have ever had came from reading the poem "Psalm III" by Allen Ginsberg, a homosexual Beat poet who was quite fond of the "f" word.

Any thoughts?