Strange how epilepsy has been the inspiration for many horror movies, as it used to be mistaken for demon possession.
I wrote something on the dream-like aspect of being awake, called“Life as a Dream: The Secular Myth of Objective Truth.” I think mass hallucination or the mob mentality figures into this interpretation too, the way we defer to social conventions or biases as if we were sleepwalking. There’s also the difference between peak states of consciousness (such as when we’re high or in the groove) and ordinary waking states: the former make the latter look like being asleep, by comparison.