Fantasy vs. Reality

Every attempt to explain this film considers the lead to be insane and the mythos to be all in his head. I don't think one person has said that maybe the fantasy world was real and somehow he saw through the veil of reality and it ultimately drove him mad.

To quote the Wikipedia page on Arthur Machen (a huge influence on Lovecraft)>

"From the beginning of his literary career, Machen espoused a mystical belief that the humdrum ordinary world hid a more mysterious and strange world beyond. His gothic and decadent works of the 1890s concluded that the lifting of this veil could lead to madness, sex, or death, and usually a combination of all three."

Sums up this film.

The woman claiming to be the lead's wife was obviously the one who was insane. She never acted in any sort of normal way. But, towards the end, when he was trying to rationalize the spirit world he tried to make her insanity contagious to save his own. Finally, seeing the otherworldly creatures on the street proved he had crossed some barrier of reality and he followed them and the girl to his death (and possibly their afterlife).

It is very reveling that as viewers try to explain the movie they do the same thing the main character does> They latch on to the insane woman and decide she was telling the truth and that the man must be insane.

Why is the world so full of realists when no one even knows where they go when they are asleep let alone when they die?