Murat, I like your interpretation, that the observer's subjective perception of the event influences how it appears. Sometimes there appears to be no observer (like the scene with ??????? in Ep 8), so it's hard to tell how objective some of these scenese are. But back to cheesy stuff, a phonograph in an other dimension objectively seems ridiculous and I just don't like it (but if it were being subjectively experienced by an observer interpreting something as a phonograph I would have no problem with it).
So there is this aspect, where the red room/vortex/lodges, etc. are differently 'themed' based on the subjective imagination-fantasy, that what they call reality is just their interpretation, not really reality, not objective etc., but I was trying to get at the more disturbing point(from episode 8) that goes with this, that anything that is 'objective' is a fiction, that ultimately there is no 'solid reality' out-there (or in another dimension) that serves as a standard for our measurement to be correct, there is ultimately quantum flux/void which shatters reality, like trauma in a person or atomic splitting creating an explosion/vortex in reality, etc....
So there is that what we call real is just our fiction(just someones imagination/opinions etc. that they claim is real), but with this is accompanied with the more disturbing idea that what we call 'just our fiction' is real(what are fictions are and their ending/failing are all there is in reality, there is no self sufficient 'objective' reality that is untied from our fantasy/measuring from which we can gain some safe standard, nature/reality is irremediably tied up in thinking, gravity law, human ethical-spiritual law, etc.). There is something like void/quantum flux alongside real/primordial stain of existence/facts, and both are mutually intertwined in a way that neither is self sustaining, thinking/non-existence/negative/nothing, etc. cannot sustain itself with reference to what is 'real', what is happening out there, and what is happening out there/facts cannot sustain itself without reference to thinking(ex. in nature, stars, planets, etc. cannot sustain themselves without the laws of gravity, and all of space/time bent by quantum flux everywhere, the residual effect of something like the expanding effect of big bang, the frontiers of which are still the border of nothing/something, so that universe has at its core this basic antagonism being/nothing).
So there is something like a subjective-objective complex that always fails to meet itself(which creates the tension from which things are created), measure correctly, and the reactions to this then change the facts/reality/fantasy/people's reality. This does not mean there are no facts, just that you cannot think of them as some solid guarantee that allows you to engage in some kind of thinking or subjective engagement guaranteed and justified by them, what is this 'objective'/reality is being constantly 'created/destroyed' by our subjective interventions. Also, our subjective interventions cannot be too arbitrary or will be too far away from 'facts', will miss the point of development we are currently at in history(chain of cause and effect) and will not properly affect this in a rational way.....and evil comes from this as well since when it goes 'beyond all bounds' it has the power to destroy reality, like when capitalist dictatorship is now going to do away with freedom and to slavery, or ideas and subjective interventions lead to the atom bomb or destroying the planet; this reality is completely tied up with everything with think/do/how we enjoy reality, etc., the facts are not guaranteed so all of this matters, we have to give a 'true rational freedom' not based on facts as ultimate guarantee, which leaves the 'subjective-thinking' outside of rational bounds, this goes crazy and tries to 'play with the facts', turns everything into chaos/destruction beyond all law, atom bomb, etc..
My take on the bad special effects is that this was the concession Lynch made to Showtime to save some money and allow him to do the 18 episodes. What's weird is that I oddly like it. They are so out of place it really shows a contrast between real and fake. This would only work in a Lynch setting.
It could well be that Lynch shoots very economically, which allows him to barter with Showtime for greater creative control...i.e. "I can deliver 3 scenes a day and shoot an entire episode in 6-7 days". I don't meant to say he's Ed Wood, but in saving ST hundreds of thousands in SFX bills, he got to spend a fortune on things like shooting Part 8 scenes in Paris...that HAD to be the most expensive episode yet.