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Sanity is described as a fragile privilege that requires careful maintenance, much like physical health. The discussion highlights how seemingly normal individuals can suddenly experience a mental breakdown without external triggers such as drugs or alcohol. This vulnerability underscores the importance of being mindful about the significance one places on dreams, as excessive immersion in dream states may blur the line between reality and imagination. The potential risks associated with losing touch with reality are emphasized, showcasing that maintaining a clear distinction between waking life and dreams is crucial for mental well-being.