If you've been in a situation where you find that a beloved family member is hallucinating, you do not ignore it.
Unless you're mommy dearest, Norma Bates, who could use a kid who hallucinates to get rid of her husband who's beating her. Norma's off her rocker and she gave birth to a son whom she's pushing ever so slowly off of his rocker. They're larger than life characters.
They're genuine human, yet larger than life, off their effing rocker characters. They're supposed to be abnormal. The town is very Twin-peakish by design. TPTB were very upfront about that. If that's the setting from the beginning, IMO it's okay to have these "grotesques." Just be true to your setting and the universe you've created.
Did anyone else wonder if Norman killed Bradley? She didn't stir and there was no contact from her all episode long. Probably not, but I wouldn't put anything past this show. It would be true to the original incarnation of Norman who went all violent whenever a girl other than mother aroused his manly beast.
Dylan ran that guy down with his truck and he's still
the most normal well intentioned/adjusted character of the bunch.