I guess I'll assume that those who would agree with these statements answer simply by making more games rather than intelecualizing it.
Well, there's that too
But I think the main reason you're not getting replies is that most people do not approach KS level creation (and video games in general) that seriously. For me it boils down to choosing between a plot-oriented approach and what you might call mood-oriented approach (yeah, I cringed a bit there, sorry). The first allows for complex storylines if you can handle those, and wonderfully detailed worlds, yet the psychological/reality-twisting element will suffer even if you try your best. The other approach is just the opposite; you can create the most exquisite and detailed world to illustrate passing from one state of mind to another, but you can't quite compensate with a complex plot - it would divert the player's attention.
I only use the second approach because I'm no good at complex storytelling; no good at storytelling in general. So my levels are mostly about worlds and moods; occasionally I succeed at adding a plot element which elevates the whole thing to a new level, but I don't think I've ever done that well. In
Pestilence it was too blunt, not subtle enough, and
Middle of Nowhere was too depressing and too difficult for most people to even finish it, let alone to think of it as a (depressing) way of looking at the world. Which it was, really, just in form of a difficult KS level...
Not sure how favorite movies and stories fit in here, but I guess the best films by my favorite director, David Lynch, are perfect illustrations of the "boundaries between mind and reality, and how reality can layer and twist rather than simply layout flat" thing.
Mulholland Drive,
Eraserhead,
The Straight Story, etc. I also can't help thinking, in context of this discussion, of some sci-fi novels by Iain Banks which attempt to mix complex storylines and serious psychological content; I'm not sure how successful they are at this, though. Even his best and/or most complex sci-fi books (
Use of Weapons,
Look to Windward,
Matter,..) to my mind can't compare with some of his "normal" fiction, such as
The Bridge, which has a simple enough plot, but explored beautifully in all shades of reality and mind. Still, the sci-fi books are fantastic stuff.