Literate programming really feels very different than this, at least in the examples that are easily found online. Literate programming reads far more like 'better commenting' (and strikes me as a massive pain to write) and less like a type of long-form writing.
Literate programming, as Knuth presented it was that the literate/comment part was the primary document, and the executable code was just a minor detail for the benefit of the stupid computer that can't read English and only cares about arithmetic not meaning.