As a genre, literary fiction depends a lot on characters, and there's no denying that Holly is pretty central to Breakfast at Tiffany's. It's true that a lot happens in the story, and the events that occur certainly are exciting and salacious and necessary to the narrative. Holly's pregnancy, her arrest, the affair with José, the story about her time in Hollywood, and even the narrator's disastrous horseback ride in Central Park all drive the story. But, in the end, we think these dramatic elements all reflect attempts to reveal Holly's character to us. Each thing that happens results in a fuller picture of who Holly is, and in this way the plot serves to create character depth. In the end, the novel is a study of Holly Golightly, and that's why we think it qualifies as literary fiction.