Hi all--the computer ate my first version of this question, so now I just sort of want to ask "What's up with David Lynch?" and call it a day.
More precisely, what's up with Lynchian narratives (like Josh's story) that seem to operate on bending/breaking the rules under which the reader assumes the story is operating? This move seems "allowed" in the same way we allow characters to turn into crabs in magical realism, or characters to hallucinate major plot events (Thompson, since Charlie brought him up), but it feels to me like a different sort of strategy. Aside from Josh's piece, and David Lynch, fiction with intentional (uncommented-on) anachronisms also strikes me as being in this category, just to list another example. At least to me, it seems that these pieces tend to hew much closer to strict realism than someone like Marquez.
So, question: how do these succeed (which involves, I think, the reader's acceptance of the rule-breaking), and what are the effects of this strategy in the first place? I'm drawn to fiction like this and find it interesting, but I'm sort of unable to articulate why or how it's working.