I think that psycho might be us.

When you dream at night your dreams tend to take the form of your fears, obsessions, desires, hangups etc. But you return. The physical world could be called a moderator. It keeps you from descending too far into your personal dreamworld.

But then you die. Same dreamworld, but no moderation. You troll yourself to exhaustion. Might take a million years. Until the physical world draws your attention again.