I believe this concept of objective versus subjective consciousness is found on this website
http://www.skyhero.comauthor Cozzolino in his book "The Path" has a chapter on some afterlife areas of consciouness. most interesting descriptions.
you said: Does this quote mean the weak-willed of us out there lose our consciousness after death like one of B-man's horror story scenarios? I don't think so myself.
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I don't see humanity in the way that judgments imply some are weak, some are strong. I just see people immersed in their own thought/emotional fields. who among us would say to another when they cry; suffer, for u brought it upon yourself? not very helpful in a retrieval circumstance to offer that to the person u retrieve to a more comfortable place.
I don't see graduation from physical plane as losing the ability to be objective necessarily. the average person transitioning can be aware they are in transition from physical body to non/physical body.
a minority can get temporarily caught up in "how real" physical life is and how much they desire to remain within physical dimension and continue that business deal, or remain in that house they built. they are called stuck then. they simply forgot they also have a mansion in the sky.
this life is thrilling and consumes us. to begin to remember we are more than this life, this physical being possessed of individuality is to build an afterlife region to navigate to upon death, even if that area you gravitate to, is to find your soul mate who has gone before you, or your greater family/disc. it is still a paradigm you have built.
some of these we retrieve belong to us soley, parts of our disc/oversoul. if they are stuck we nudge them from something sticky to see it not there. does not mean they are weak at all. it just means each person we can nudge, only strengthens our own self to provide a staircase for them to climb up on.
it's only a dream, or a nightmare for some. in the end the curtain falls and we just say, oh, man, I thought it was real that time.