That's, uh...a pretty thought-provoking list of questions you got there.
Honestly, I think it all boils down to the location. Something in this area is causing this, but who knows what, or who knows why. Kind of hard to investigate the matter when you're trying to figure out who you are, especially when you have a second set of memories of another life with aspects that become real here.
Personally? I think it's all parallel worlds. That person I dream about is just another version of me, but not exactly...me.