Daily Entry | Alan Wake - Theories (UPDATED 6.6.10)

I finished playing Alan Wake a few nights ago. Outisde of it being fun. Outside of it having an imaginative combat system. Outside of it having great pacing. Outside... well, outside of it being a great game overall, the story in Alan Wake provides one of the best mindfrag mysteries I've encountered in a great long while. After beating the game 3 times in rapid succession, I've formulated a theory of the events. This theory is quite complex, and I'm sure it won't fit in the forums I'd love to contribute to, so I'm making this my HQ. I'll keep it updated.
Let me warn you all, this entry contains MASSIVE SPOILERS of a MASSIVE nature regarding the video game Alan Wake. If you haven't played or beaten it, and don't want to ruin the entire story, don't read this! Also, if you haven't played and beaten the game, you probably won't know what I'm talking about, so there!