Many of Freud's theories are quite insightful; some are too limited, IMHO.
Should we really be canonizing special societal privileges in the law based on idolatrous fetishes? Disability, welfare, Social Security, etc., etc., ad nausea...
Of course not; but the real question, ime, is why "we" do.
In the SF Bay area is one of the nation's strongest, most ardent "organic" movement, activists, products, sympathizers. Everything is to be used and viewed in its natural state. Meaning, "at the root".
Contrast this with "alternative lifestyles". Alternative lifestyles are artificial constructs, no matter the argumentation. A carrot (root) does not grow up to be a tomato. As environmentalists wag: A carrot CAN become a tomato if pollution has altered the genetics of the plant in conjunction with other "stuff". So, SF demands clean air, clean water, no plastics, etc. But somehow, paying for transvestites to have medical surgeries, etc., is considered "helpful" when in fact it is not based in organics. But rather psychotic form of thinking.
In the 70s, that was the basis of my argument against abortion when debating the subject: How can you not be organic about life in the womb? Most all vocal organies are also pro-abortion.
The mellower organies understood this.
And then there's folks like Code Pink who wage "civil war" while claiming to be anti-war.
And Peace and Justice organizations. They are always interferring with someone's rights, while claiming to be "for the people".
As you've written:
With pantheons of fantasies as their medium of infinitization, they still have nothing in them of reality, any more than there is in the things that seem to stand before us in a dream."
Yep: Armies in the Night.