Hi Bruce:
I agree. Students lose interest when they are tired, bored, unprepared, can't relate to the material, or are focused on other thoughts. The goal is to keep the focused on the current class topic.
Stories that are interesting, or exciting events seem to almost always "jog" students to listen and pay attention. Once that happens, we can return to the current topic. Good teachers are able to do this seamlessly (without the student even aware this tactic has been used).
Other times, more agressive maeasure are needed involving students moving around, taking a break, changing topics, activities or delivery methods. These measure are more extreme and I would say are limited to those times when the whole class just seems to be uninterested in the lesson.
Regards, Barry