Here is a new theory derived from Japanese folklore.
In Nara, the birth place of 
Japanese culture. there are stories of nature, culture, history; folk 
stories, and tradition there. "Tsukumo-gami" are things that existed for
 a long time that develops a self-awareness and soul. This is a 
unique idea that things have souls. For example, when you lose an 
important thing on your desk, without becoming frustrated you should 
think of it this way. "It is trying to come back to me!" Then you won't 
get so frustrated or you'll be happy when you see them again. This
 is very Japanese way of thinking that every possession has its own 
soul. 
It is something hidden in plain sight. It is a very interesting concept.
What strikes me now is that fans were really pulled into what Desmond said about his attempted escape from the island. 
Desmond described the Island as a snow globe
 after experiencing navigational problems trying to escape it. Desmond 
had tried to flee the Island in his boat, but he steered due west rather
 than the necessary bearing. As a result, he arrived back at the 
Island. 
JACK: So, before you ran off, I guess you just forgot to mention that you still have a sailboat. Why'd you come back? 
DESMOND [laughing]: Do you think I did it on purpose? I was 
sailing for two and half weeks, bearing due West and making 9 knots. I 
should have been in Fiji in less than a week. But the first piece of 
land I saw wasn't Fiji, was it? No. No, it was here -- this, this 
island. And you know why? Because this is it. This is all there is left.
 This ocean and this place here. We are stuck in a bloody snow globe. There's no outside world. There's no escape. So, just go away, huh. Let me drink.
There 
were also other references to snow globes in the series. Hurley's comic 
book contained a picture of a dome covering a magical city. There was 
also a snow globe on the counter of the shop where Michael pawned his 
watch. And there was a large blue globe on the top shelf of a bookcase 
in Aaron's bedroom.
The
 explanation of the castaways being trapped on the island was that they 
were caught in a snow globe created by unique magnetic energy. Except, 
what if it was more literal?
Snow globes are souvenir items that 
depict a time, event or place. The classic example is a winter holiday 
scene. The item is jostled and plastic snow is churned about in the 
fluid to create a winter scene.
Instead of an explanation that the 
show was all inside Hurley's head, put it inside of a tropical snow 
globe that over time developed its own souls. All the characters were 
actually animated from the elements of the globe. 
The light at the end could represent
 many different things. It could represent an actual light switch in the
 globe that turns on a lamp so people can see the scene more clearly. 
Or, it could mean the actual light of the sun being shown coming into a 
broken element of the casing (releasing the souls being bonded inside 
the globe into the real world).
Such a complex and magical premise 
was never considered in the original pilot script or the writer's guide.
 The premise seems more suited to Japanese anime, where tales of humans 
being intertwined in a spirit world are common stories. But the idea 
that the island was a snow globe, and that its objects inside it 
developed consciousness or souls, has its own wonderful possibilities.
