This sounds quite in tune with some of Daniel Dennett's ideas also, especially from 'Consciousness Explained'. The gist is that our consciousness is only, and

This sounds quite in tune with some of Daniel Dennett's ideas also, especially from 'Consciousness Explained'. The gist is that our consciousness is only, and all, that we can say, or in any other way act on the world. So if people really believe in the things they say, those things must be quite real to them. And perhaps visual hallucination come from some incomplete separation of the 'inner' visual loop - thoughts, memories - from the outside visual information.