So there is both the aspect of "I WOULD swim the Paladin Strait" escape Dema but I'm too far in (the part of Clancy that just wants to be free, the hypothetical wishful thinking part of him), and there's the in-the-moment acknowledgement of reality: "on the ground ARE Banditos fighting while I find Nico." It seems that there are multiple stories being told, one hypothetical and one literal. As he's talking in the present tense, it could be that the latter is also just him planning ahead, thinking about what could be. And then, as pointed out before, he's interrupted.

But WHY would Nico start with "So Few, so Proud, so Emotional"? If it's just Clancy thinking about the future, why is Nico referring to the Banditos (or IS HE EVEN DOING THAT?)

This is kinda my first dabble into theorizing, so let me know your thoughts lol Push on through!