In order to appreciate the questioning of reality aspect of this film I think it helps to also consider the cultural background it has emerged from.
Avalon is a modern re-presentation of ancient philosophical wonderings about the nature of reality, of our selves, and the extent, if any, of free will, and thus of our imagination, motivation, dreams and desires.
Writer Kazunori Ito and director Mamoru Oshii are adding to the rich heritage of uniquely Japanese interpretations of the ancient Hindu and Buddhist ideas of a soul, life, death, reincarnation and maya.
Of course, many cultures traditionally imagined these same concepts, which are just as contemporary today, including the Celts, whose myth of Avalon underlies this film, as does the reference to their Norse and Germanic cousin’s versions of myths of Odin.
“Ancient myth has it that Avalon, where the sea met the land, was the meeting place of the dead; the point where they passed to another level of existence†http://www.glastonburyabbey.com
The creators bring the setting of these ancient questions up to date, by including and examining contemporary Japanese and world cultural developments such as VR, online role-playing, shoot em up gaming and its obsession with exaggerated WW II type weaponry, something that not surprisingly, still haunts the modern psyche, and finally, by portraying an otaku – distrusted and derided in mainstream contemporary Japanese culture – as anti? heroine who, like every other hero in myth and literature a la Joseph Campbell, is motivated on her quest by her inner drive to experientially investigate these ancient questions.
Who is she? Who are you? What is “reality� Well, philosophy is the art of asking questions, and zen is one tradition of investigating for yourself. Avalon is a modern koan pointing the way, asking you the same questions and demanding an answer! Enjoy!
ps kudos to the guys who pointed out the AI aspect. she’s still a classical heroine, though the question now is, does she have any free will in that heroism?! ie do we?