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I used to read Rifts and Palladium supplements as guilty pleasures when I was a kid, but never did any real roleplaying with them. I have gone back to them recently, and found something wanting in still and editing. I was wondering whether the Dakka community could direct me to the best role playing books for the purposes of a good read; e.g., for content, style and narrative.

I've never really considered reading RPG supplements for fun...

You might look at some of the White Wolf stuff, there is usually a decent bit of fiction included in their source books. I prefer the original World of Darkness stuff (Vampire: The Masquerade, Werewolf: The Apocalypse, and Mage: The Ascension) but the new stuff is probably alright too. Promethean: The Created definitely piqued my interest.

The Classic Deadlands ( and Hell on Earth range) are very good for what you are wanting . The first half of each source book is the players section and is always laid out as a travel guide or instruction manual while the second half is the whats really going on section , the setting is also very well thought out (though that sadly went a bit downhill when they revised it )
Look for the distinctive orange covers though they can be expensive to buy now or try scribd.com to read them online for free

The Extraordinary Adventures of Baron Munchausen is by far the best. By very far.
Unplayable game, but amazing read:

"A Game of Wagers, Wine, and Competitive Lying

Players, preferably gentlemen from good families, challenge one another to recount, as outlandishly as possible, their many exploits, occasionally wagering against the narrator's ability to incorporate complicating circumstances into the tale.The Extraordinary Adventures of Baron Munchausen contains a full set of rules, background, a revolutionary system of mechanics that does away with dice or cards and uses money and fine wine instead, two combat systems ('duelling' and 'duelling for cowards'), quick-start rules and a great many insults against the inhabitants of various nations, but principally the French. This game can be learned in under five minutes, requires no GM or preparation, and takes about an hour to play. You will require pencil, paper, imagination, a manservant, money, a selection of fine wines, noble blood, a sense of flamboyance, and at least one attractive member of the opposite sex (optional)."

Seriously, it's awesome:

"Make sure that each player has a purse of coins before them equal to the total number of players... If your company numbers less than five, then give each man five coins. If your company numbers more than twenty, then think not of playing the game: instead I advise you to pool your purses, hire some mercenaries and plan an invasion of Belgium"

THAT, is a rule worth reading.

I need that rule book on my shelf. Now.

I just got it

Thirded - the Baron Munchausen RPG is excellent.

I understand that some of the various GURPS sourcebooks are very well written - because they use a generic system the setting books focus mainly on the background rather than the rules.

The Extraordinary Adventures of Baron Munchausen doesn't sound unplayable at all. On the contrary, it sounds as though it demands to be played.

It's also part drinking game...
Frankly that book is worth reading for fun.
OP kinda delivered!

I agree with the suggestion for White Wolf's Old World of Darkness.

Also, Amber Diceless - Especially if you read Zelazny's chronicles

There is always The Complete Book of Elves, though.

My Life With Master (Half Meme Press) is a good read not as a story but as an exemplar of how to design a very tight game.
http://www.halfmeme.com/master.html

If you want stories, the original Gloranthan stories of RuneQuest are good.