nice save
Agreed, I'm beginning to think that it's obvious from the start what the twist is. The institution obviously serves as a realization of one's self and that was the whole point of the twist. And, in my opinion, the conspiracy theory, even if taken place in the Cold War Era would have been an inferior ending on every level.
Also, Scorsese must have made his cast and crew watch Vertigo before shooting. A lot of camera angles, especially during the lighthouse sequence, were reminiscent of the classic thriller. As for Kubrick, the POV shot of the jeep entering the asylum through gates felt just like Danny on his toy wheeler.