That’s my interpretation too.
Ken is the main thing I’m not sure about.
When there was the 血 scene, my first assumption was also a suicide, but nope, blood’s Ken’s. But why?
(because of the transgender twist, I’m going with “they” pronoun below, because I couldn’t decide between she/he)
Protag went to Ken because on their own volition, Ken didn’t pressure them into anything. Is is just about the fact that the disgust was so strong protag didn’t see any other solution than murdering Ken in their dream?
I think there was a connection between playing house and the make-believe game with Youji, but also with the dreams protagonist is having and with the loss of sight (I think there were also weird things with the sense of touch?) at the ending. Everything is about disconnecting from reality and building your own ideal world. Oh, and Masao’s pictures, too, were the ideal fictional world.
Even if the protagonist had a transgender realization about themselves, it still wasn’t a way they wanted to connect with the world. I had the impression it was more “I don’t need an utopia outside of me, I have a perfect utopia within my own body.”
Hmm, technically, there was already one utopia within protag’s body, their mind TV, which was broken by Ken.