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Dear J.C.N Smith,
You replied "Absolutely! But who is doing that (i.e., confusing the two of them)?"
A: Not me, probably not you. I can't speak for everyone else. Most people in the general population have probably not spent much, if any, time thinking about the idea that the things they are observing are fabrications from received data, rather than the objects themselves; so there are two versions of the things in the universe, experienced images and source objects. That's because, I should think, most people have other things to think about that they consider important and interesting.I can't see into their minds though, to know what they think and who is confused and who isn't. I am aware that you and I have, what has until recently been, a rather strange niche interest in alternative ideas about time and the Universe.
The space -time continuum still seems to be the accepted mainstream explanation of the universe. I regularly see it presented as "The Universe" on TV and in magazines. When many people speak of the Universe they are talking about the space-time continuum. That is not thought of as just images or what will be observed but as actual material objects distributed in time and space -hence the grandfather paradox and all other ideas about time travel.Its still mainstream stuff not "the fringe".There is still, it seems to me, a lot of general uncertainty about how the quantum world of atoms and sub atomic particles can be made to fit with the space-time continuum necessary for Einstein's relativity. I don't want to be undiplomatic so I don't think I can say much more than that.