I will disagree with the OP. RPGs are not allegorical, and cannot be, because they do not have a pre-ordained structure. Instead, I would say RPGs are their own experience, that the experience is precisely a virtual reality. While real life extends into the themes introduced into an RPG, there is no requirement any given matter has to be addressed, and hence RPGs can be considered in the realm of play, rather than philosophy.
I hate it when a discussion drags down to "let me go look up the real meaning of the word", but I suspect I need to, because I'm either using it wrong, or you're missing the point of allegory. Let me go look it up here...
Allegory - Wikipedia, the free encyclopedia
OK. I suspect those of who "like" allegory aren't using the best word. Allegory is supposed to teach a specific lesson with a specific point. Like Plato's
the cave.
While movies like Dances with Wolves (or its modern remake Avatar) may make a statement, their design is not specifically allegorical. It's something else, I just can't think of the right word. For those who argued against "allegory", please pretend we said the "right word" and ponder from there.
There's gotta be a literary term for taking a real world historical or current situation and emulating that in fiction (but not actually setting it in that literal situation). FYI, emulation in writing terms means to write in the style of or model after. Thus, in many ways Eragon is an emulation of Star Wars: a new hope.
RPGs are a mix of dramaturgy, storytelling, strategy, challenge, puzzle, improvisation...
...and building. Lots of players like building something, an empire, legacy, whatever.
They are definitely not, however, novels.
they could be novels. Though not all adventures are novel worthy. And not all sessions run to be "like a novel" are any good (railroad concerns).
I do posit that a DM can use storytelling techniques to make the experience of their game feel like a novel (in a good way). Skipping the boring parts, etc.
I also posit (having done so), that if the story of your campaign deeds is decent, you could edit and refine it into an intelligible story.