I think we remember what we need to remember & only when we're ready.
I think we are each running our own simulation of our own creation that conforms to the rules of this realm.
I think the first level is one in which you believe you are the avatar. This is the only level most NPCs experience. Everything is happening to them & it scares the shit out of them.
Level 2 is awareness that you'are also the player experiencing this realm, through the avatar. You're still experiencing it all through the avatar but you know the avatar is not the greater you.
Level 3 is where you get to actively choose how things play out. In essence you've found out how to adjust the variables that the simulation is running on.
I don't think playing level 3 is necessarily better than level 2. God mode tends to take the fun out if any game.