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 I decided to read the stories that you have posted about. I, too, was interested in how each story lead into another. This story-within-a-story reminds me of the Sandman graphic narratives as a series. For many of the books, individual characters that might have been side or supporting characters are expanded upon. The book we read gave Barbie a background and personality while in one of the previous books in which she was introduced, she was merely a side character who barely interacted with the main character. 

When Barbie says that she believes there are many worlds within worlds within just a single person, do you think this is what she means? It's interesting to contemplate the reality of each character in the 1001 Nights stories, as each one seems eager to tell a story...