What kind of crazy?

I can't tell if the Postal Dude is dangerously delusional or he really is surrounded by psychos. Since it's set in Arizona, it could go either way.

But there's a possibility that he's actually harmlessly fantasizing while enduring tedious day after day in a *beep* town. For one, there's no lasting consequence to anything; bodies and blood, shrapnel and scorchmarks all disappear after they're out of sight and out of mind. Unique characters come back to life after gettign gunned down, and every day begins as normal as the last. Also, the Dude's recollection of events seem to contradict each other, and never quite confirm the illustrations that go with them. For example, he never quite says Paradise was destroyed in nuclear explosion, only that the economy tanked, with the subtext that he was jobless in a crappy town he only went to for a job.