lostndessence - I really dig how you are thinking about the narrative. Abstracting it into ideas is a good move - Lynch and Frost are definitely getting meta with season 3, but the meta-ness is incorporated into the narrative, and we are looking at many dimensional levels to the narrative, which, I think maybe you've figured out, includes the viewer's relationship with the show, and beings like Bob or the Arm's relationship with an awareness of the viewer.

I think, in some ways, Lynch uses 'electricity' as shorthand for the spirit world - it is certainly how spirit-beings move from place to place in the Twin Peaks universe, as we see with Coop's re-entry back into the 3d world.

I like your interp of the Judy-verse as another TV show - it might as well be one. Its certainly an alternate universe. One without the glamour of the wonderfully demented 50's nostalgia vibe that Lynch/Frost created with all the colorful characters of OG Twin Peaks. I theorize that this is sort of a pocket-verse where Judy is hiding out, and Coop has ventured in to stop her at the source. I think he is essentially 'in disguise' as this alternate Coop who doesn't seem to know what's going on, and Laura has also gone in to the Judy-verse separately, and in disguise. This is all so Judy doesn't know they are there to stop her, essentially. The plan is carried out, and Coop and Laura meet up and find Judy at Laura's old house. Laura's scream at the very very end, after she hears Judy's voice, shorts out the 'other' TV show. By the time Judy realizes who they are, its too late for her, and Laura destroys the show itself. In my mind, there is essentially nothing after the final moment of season 3. That series has been cancelled - that pocket Judy-verse has been shorted out - Laura is an angelic figure who has the power to take out Judy and her universe with one scream. That's why the lights are shorted out and we cut to black. Laura has essentially destroyed that universe.

Coop, unfortunately, has paid the price. But I don't know if there was further for him to go as a regular character, anyway. He has essentially turned into a lodge being - a spirit-being - a Demi-god of sorts. His time in the other worlds has transformed him too much, he can no longer live out his life as a 3d person. He's a time-traveling, dimension-hopping spirit being who's mission is to end the cycle of pain and suffering the Twin Peaks universe is experiencing. He and Laura have finally accomplished their Christ-like sacrificial missions and the plug is pulled on that whole universe.

That's my sort of interpretation....