Linearity in print and thought has made language unable to deal with the invisible world in any meaningful way, except as pathology. Now this invisible world is returning to the language through people like us with one foot in each world. The human mind is haunted both by the many presences sensed within the self and by a confused sense of self. Wherever we turn in the world of nature and the psyche, we encounter life, animation, and a willingness to communicate that confounds the fragile pyramid of boundary consciousness and human values that have emerged over historical time through the suppression of our intuitions.
I've taken the position that these entities we encounter are nonphysical and somehow autonomous. Ralph, as I understand him, accepts this view but anchors it into the Neoplatonic trinity of body, soul, and spirit. From this point of view, these entities are inhabitants of the spiritual domain of the logos. They are the logos become self-reflecting and articulate. Rupert correctly points out that it's in the realm of dreams that we most commonly encounter entities, and he further suggests that behind these entities is the controlling agency of the world soul. His notion is that the world soul actually communicates to human beings through the production of forms that we interpret as the denizens of an otherwise invisible and mythological world.
Our collective conclusion seems to be that nature, both in whole and in many parts, is magically self-reflecting and aware. Encountered in its most rarified expression, the world speaks to us, and we, as scientific rationalists are confounded. Nevertheless, it is for us to mold our models and theories to the world as it presents itself in immediate experience, not as we would have it in some grand and sterile abstraction. The elves and gnomes are there to remind us that, in the matter of understanding the self, we have yet to leave the playpen in the nursery of ontology.
Terence Mckenna