I think the story is told as a sort of cultural marker of what a Big F-ing Deal this discovery was/is. Mathematics, collectively, struggled for a long time to find a way to make 3-dimensional numbers into an algebra in a way that extends the algebra of complex numbers. (The cross and dot products are unsatisfying, because they don't have division.) The shock that this can be done in
four, -- not three -- dimensions is still sort of reverberating, and that's what I think this story marks. It's a short stand-in for the longer story I've just summarized, and it evokes (or is meant to evoke) the mind-shattering thrill of discovery.
I don't necessarily think the story accomplishes this -- your question is but one piece of evidence that it doesn't -- but I think for those who spend a good amount of time with these kinds of algebra questions, it comes to take on that role, and that's why I think it's repeated.
(Teaser -- if you want to know more about these kinds of questions, Google for "real division algebras". There are not very many, and they way they are organized is not, I think, something one would expect.)