Shutter Island Discussion Thread *SPOILERS*

[The Spark]

Even though I noted that there were spoilers in the thread title, I'll spoiler everything here too, just in case.
[spoiler]Is Teddy sane, or insane, Shutter Island- testing people in the way that Ted first believed or just an asylum for the insane? On my second viewing of this movie, I figured that the doctors were right- nothing bad was going on, and that at the end Teddy understood that he was a patient there for the reasons that the doctors conveyed towards him. Then, when he said "Is it better to live a monster, or die a good man?" at the end, it entails that he intends to die a good man by being lobotomized instead of living with the guilt of his wife killing his kids, and him killing his wife, and everything that went on during the war.

Now, I'm on my third watch of the movie, and my theories are being altered greatly. I'm not sure what to think- is it possible that the whole time they really were drugging him, and they are doing experiments on patients? After all, in the beginning, when Chuck and Teddy are on the boat, and Teddy says his cigarettes are gone, followed by Chuck handing him a cigarette of his own-that could be the start of a series of druggings, whether it be from cigarettes or the pills from Teddy's "migraines". Plus, it take about 48 hours for drugs such as this to kick in. How long was Teddy at the island? 48 hours. Also, at one point the movie where the nazi doctor says to Teddy, "wounds can create monsters". I think the doctor is alluding to the fact that "traumas" can be exploiting to make anyone crazy. The doctors could be using parts of Teddy's past to convince him, among others, that he could actually be crazy. In another part, where Teddy and Chuck are investigating Ward C, and the prisoner attacks Teddy; how could that be orchestrated? Lastly, on the very last scene, it shows the lighthouse again, accompanied by that dramatic "dun dun dun". Would that imply that something bad really was going on in the lighthouse?
At the same time, maybe they are still drugging Teddy, but only for medication to keep him calm so he doesn't go berserk and and crazy-like, as they portray him to be. Then, during the prisoner attack, that could be another guard or doctor acting out another "role". That would explain why Chuck and the guard are so upset upon discovering how badly Teddy beat him, and almost strangling him to death.
Another detail of the movie that I don't understand is: why did Teddy at first think that Dolores died in a fire? A fire, of all things?[/spoiler]

What do those that have also watched this movie think? What other opinion do you have about the movie? At this point, I'm really confused, anyone want to sway my opinion in a certain way, perhaps the correct way (if any, maybe there isn't any answer of exactly what was supposed to happen) so that I can better comprehend the movie?

[Deepfake]

Haven't seen it. I'll probably grab the rental sometime, when it's out here.