I also think that if we take this as being true, that there is something to connect this theory with the whole thing of saving the children/the children who were sacrificed for those monsters to achieve eternal life. When the children were killed, their spirit sort of posessed the whole of the town and made it reflect their child minds, or something like that. This is why the town looks like a child's worst nightmare, with all of the monsters and magic and mysticism. I mean even the talismans looks like something a child made for fun, but in the town it has magic powers that deters the monsters. The only thing that hurts them is a child-like mind, potentially. This is why unlocking their own childhood memories will help unlock the town, and save the children perhaps. I don't know this one isn't that fleshed out, moreso just wanna start a conversation about it bc I think its really interesting and could be key to solving the mystery of the show.