Interesting thoughts. However, surely there must be some way to discuss on a mddle ground of some kind. Although I believe (at least in my waking state) that the things I see in hyperspace are projections of self, and not other beings, I have also directly experienced entities and spirits as if they were something "other" than self. What to do with this situation? There is a bit of a disconnect between belief and experience.
I don't think people should immediately turn off as soon as they read "spirits" or entities. The nature of our very existence is to have a sense of self and other when we all exist in the same universe. Our bodies are made of the exact same stuff as everything else out there, and yet we call our bodies self and other stuff.... other stuff. We have dreams in which we encounter others and talk to them as if they are really there, and yet we know, only after making the transition to wakefullness, that the beings we encountered in dreams were entirely manifestations of self, not really there. I wouldn't think it delusional or absurd at all to have a dream of some of spirit guide and ask that spirit guide for guidance in life. It is no different than self inquiry. Maybe that spirit guide just represents a part of yourself that knows what is right, but is afraid to walk that path because it's difficult and noble and takes work.
However, I would agree that people who tend to take dreams and hyperspace literally are prone to believing certain things. Perhaps prone to believing that non physical realms have impact in this physical plane. The same phenomenon happens with many religions and superstitious folks.
As for me, I tend to think of ALL things as occuring within one being. Things appear to be separate, but aren't. My brain makes a distinction between things that are of my body and mind, and things that are not. My brain makes that distinction between my body and my computer. The tricky thing is though, my brain also makes that same distinction between self and other even on things that are self. Dreams are an example. Why does the brain tell me that I'm talking to other people when I go to sleep when it's entirely chatting with itself? Perhaps this thing we call self is just as much an illusion as what we call other, or entities...... and the only "real" thing is the space that everything occurs within.