Iron Man's fate varies in different Marvel Comics story arcs. But in certain ones, unfortunately, he does die. It often depends on the creative direction and plot developments.
One popular theme is alternate universes. Writers like to explore what would happen if certain events in the MCU went differently, like if Iron Man didn't build the first Iron Man suit. It gives a whole new perspective on the characters.
A really cool fanfic is 'Iron Man's Redemption'. In this story, Tony has to face the consequences of some of his past actions and tries to redeem himself while also dealing with new threats to the Avengers. It delves deep into his character.
One great 'Avengers Iron Man Fanfiction' is 'The Iron Avenger's New Tech'. It shows Iron Man creating some amazing new gadgets that help the Avengers in a really unique way. The character interactions are really well - written too.
There's no official story about the Avengers sitting down to watch Iron Man fanfic. Fanfics are creations by fans and not really part of the official MCU (Marvel Cinematic Universe) canon. However, it would be an interesting concept. Maybe some of the more tech - savvy Avengers like Tony Stark himself (if he were alive in a fictional scenario where fanfic existed in their world) might be curious about what fans write about him.
The placement of the Avengers in Iron Man 3 fanfiction can be all over the place. It could be that they show up to assist Iron Man, or they might be off on their own missions and only mentioned briefly. It all comes down to the imagination of the fanfic writer.