What happened? (spoilers)

(has spoilers) OK, I just watched the movie and found it unique and intriguing, but also somewhat awkward. Either way, I never figured out exactly what happened.

Here were my theories: (when I say "reality," it means reality as we know it)

First theory: Class Real is "reality". Once Ash woke up in Class Real, everything seemed to come together and finally make sense. Class Real is "reality," which is why it's colored normally and Class A, and the yellow world Ash lived in were both the same color - they were both "the game." This explains the term "unreturned." An unreturned has left the GAME and not RETURNED to it. This is not good for the game developers! They don't want players to leave their game. They want to keep everyone addicted to the game, and not lose any players. This theory also explains Ash's mission - to kill Murphy. Since the game does not want to lose any players, the game can brainwash elite players like Ash into temporarily leaving the game, and eliminating an "unreturned," or, someone trying to leave the game - something which cannot happen. This theory however, is disproved once Murphy disappears like a virtual player, and when Ash sees the ghost (again) in Class Real. So Class Real is not Reality.

Second theory: The pale yellow world that Ash lives in is reality. The only reason "reality" is pale yellow, and Class Real is in full color, is to show us - the people watching the movie - that the game has created a reality that feels better and more real than "reality" (pale yellow world). In this theory, I supposed that the goal of the movie is to make you think "What if there is a reality more "real" than our lives?" This means Class A and Class Real are "the game", but the world inbetween is "reality". However, this theory is also disproved when Ash talks to Murphy, and he's alive and well. How is it possible for Murphy to be communicating to Ash, "alive", through the game, when, in reality, he was laying in a hospital bed and NOT hooked up to the game in any way? You could argue that the Murphy she saw in Class Real is a simulated version of Murphy built by the game, but that wouldn't really make sense. Theory disproved.

Third theory: Since Murphy disappeared like a game character in Class Real, although it's closer to "reality", it's still part of the game. This may mean, more simply, that there is no escape from the game. For example, the pale yellow world could be like a game's chat lobby before you actually enter a game room (and therefore it's not "reality"), and Class A/B/C/Real are all parts of the game as well - there's no escape - not one that we, the viewers, get to witness at least. Everyone is rotting in VR chairs or matrix tubes somewhere, maybe similar or different to the chairs they use in pale yellow world. "Reality" in this theory, we never even get to see. The game "Avalon" then, may even have a different name in "reality", or it's not a game at all, and everyone's just stuck in tubes against their will, maybe as some experiment to find the most intelligent "players" or whatnot.

Fourth theory: This is the theory that kind of makes me mad if it's true. There is no concrete explanation and the movie was intended to make the viewer imagine their own explanation. (just like what I'm doing now and others have done)

What do you think..?