I agree with just about everything you say, but this part is a bit of a red herring. Unless there’s a little person inside your head looking at the projected picture, it really doesn’t matter which way the image is projected and which way your neurons are wired up, any more than it would matter if you turned a desktop computer upside down before you turned in on.

As for false memories, the “Bugs Bunny in Disney World” study is particularly fun.