Quite a few theories on here suggest that Madotsuki's dreams are influenced by the "horribly disturbing past" that she supposedly had, with her friends dying and her being raped and whatnot...
I think, however, Madotsuki's dreams aren't influenced by her real life at all. My interpretation is, Madotsuki is probably diagnosed with a mental illness at a young age and is not allowed to go outside because of that. I don't think she's really a shut-in by choice.
Whatever her illness is, it made her have an overactive imagination. Since she could not go to the outside world, she decided to make herself a world in her dreams. (In the dream world, she was free to go out the door, wasn't she? If she really wanted to be a shut-in, she would refuse that door too.)
The MOTHER areas of dream world are commonly know to be a result of her love for video games.
But keep in mind that the famicon is not the only thing in her room: she had the TV too (true, in the game it seemed to be broken, but it was probably working some time ago. In fact, she might've made the dream world BECAUSE her TV broke)
From this, we can interpret that she based a large portion of the dream world from whatever she saw on TV.
And she probably really enjoyed horror movies, because to her, they are not scary at all. She was probably more amused by the surreal qualities of them. Thus the disturbing dreams, which she don't find disturbing.
So yeah, she gave her self a neat little world filled with imaginary people. But because of her lack of social experiences, she could not communicate to most of them. However, she can easily overpower them (via knife or stoplight effect)
In fact, most of the effects are "superpowers" she wish she had.(ie: bike=super speed, stoplight=freeze time, triangle kerchief=invisibility, witch=flight, medamaude=teleportation, umbrella and yuki onna=the abilities to summon rain and snow, etc...)
In the end, her dependence on the dream world made her lose grips on reality itself. One day she wakes up, but does not realize that it's the real world instead of the dream world. She climbs on the balcony thinking that she could fly (like in the Witch event), and...well....
....yeah, that's my interpretation. There are plenty of holes, but w/e. 8D
Last edited 10/04/16(Fri)13:11.