I think you are probably right. Psuedofoliculitus barbs (ingrown hairs) or something simular.
I've read some accounts of Morgellans which indicate that the threads flouresce under black light, which would seem to disqualify natural hair growth.
The first time I read about this, I thought about having worked construction during my summers in high school and installing fiberglass insulation on hot summer days. Regardless of the precautions you take, it's virtually inevitable that some of the fibers will find their way into your dilated pores and for me, anyways, produced the 'bug-crawling' sensation. It could be any number of things, but my inclination is to believe that all the smoke is indicative of some type of fire. My money is either on some type of synthetic fiber which produces an allergic type reaction or some heretofore unidentified mite or like organism.
As a side note, I thought that I'd been bitten or stung by just about everything that bites or stings in North America, less black widows, bears, rattlers and coral snakes (yep, I've got the brown recluse and copperhead credentials, fire ants, fleas, chiggers, ticks, wasps, hornets, bees, dogs, ferrets, small alligators, a snapping turtle, gar and muskellunge.) This week something nailed me on the web between my fourth and social fingers. It initially looked like a chigger bite and formed the characteristic nodule. In my past experience with them they occurred in bunches and this time there was only one. With no woman in my life these days, I'm kind of short on nail polish at home so I laid some superglue over it which reduced the itch, but unlike the welts I've had from chiggers in the past which hardened and shrank away, this one became increasingly tender and after a few days, I lanced it and drained som thick pus...It appears to have a normal scab now and is painless....I'd be interested if anyone has any idea what kind of bug hit me.....