Rather than logical projection, what about perceptual projection?

By that, I mean that our mind functions by creating a sequence of perceptions from the information of our senses. Like seeing faces in random forms, or assuming causes for noises, our minds create these images and then constantly adjusts them to subsequent information. Thus this assumption we are perceiving some degree of objective reality, yet the scenes we see, our minds easily duplicate when we are asleep and dreaming.

The only difference is that when we are asleep, these sequences of images are created out of memory and emotion. So they don't reset to outside information, but simply built subsequent perceptions out of what the mind previously constructed. The faces take on lives and the noises draw attention to activities our minds concoct.

Which raises the question of what does consciousness actually do?

It apparently isn't responsible for our immediate responses, but often tends to imagine the range of possibilties that might have occurred and putting the events in context.

So it seems likely the function of consciousness is the imagination, which better informs future actions.

Consequently it is the function of the mind to manufacture "byproducts." Test out the possibilities in order to decide.

Likely other faunal minds also create these images of their environment and imagine the options. Like prey animals instinctively imagining being torn up by the approaching predator, giving them the adrenalin to run.

The problem would seem to be that as we get better at controlling our environment, the more we can push back against the outside input and continue to lives our lives in an effectively dream state. Which means we can ignore that outside reality, until such time as it overwhelms our ability to ignore it.

Nowadays we don't have to be filthy rich, politcally powerful, or live in monastic retreat, most of us can just link to some other internet input to continue papering the walls of our flow state.

As a theory, it does give some explanation for various behaviors, both individual and group.

From political movements, to business interests, to some academic circles, to military strategists, the collective imagination builds up these scenarios that can seem as real as the dreams we experience sleeping and then act on them instinctively.