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Lain is not about “a digital identity that *seems* more real” or about “*feeling* that your identity is [anything, much less constructed with intention by an outside agent]”. It’s an ontological analysis of identity as such. You missed the point.
Paranoid or sad is mostly irrelevant, though paranoid is slightly more apt. Again though, the art itself has a status of <feeling>, it’s not about <feeling>-inducement in the audience.
Also clearly it’s fine to interpret aesthetic experiences however you wish, but the more straightforward interpretations of lain are pretty uninspired and drab
should have said 'critique' instead of 'analysis'
also i don't love the tone i used here