Hi there,
the title of your thread indicates that you question the idea you are entertaining in your mind and I believe that is a good thing.
With DMT and psychedelics in general there's a territory that I call "thin ice territory". Imagine walking on a frozen lake. There are spots where the ice is thinner. You can sense it when you walk on it. You can hear it cracking. Ask yourself whether it's a good idea to proceed or if you should rather turn around.
This is you questioning if you're loosing it. You can proceed, but keep in mind the ice might give in, brake and you'll find yourself under the ice in cold water having difficulties to find the hole that leads back to the surface.
Maybe this analogy only makes sense to me though... What it comes down to is that I believe it's alright to develop certain ideas as long as they don't leave you disfunctional and hurt anyone in any way, including yourself. At best the ideas should benefit you and the people that surround you.
In my experience it's a good thing to take a break from psychedelics for a while and reevaluate these ideas after some time has passed. Leave the ice and retreat to solid ground, so to speak.
I haven't seen the beings you've mentioned, but I have felt nature communicate with me many times, crying for help, letting me feel what we as humans do to her. These experiences were very challenging for me, but at the same time most valuable. Whether the connection was real or not doesn't really play a role. These experiences have changed my behavior in everyday life in a good way. I try to do my part in living a sustainable lifestyle. Maybe others even see what I am doing an follow my example.
What you have experienced sounds somewhat similar. There's lots of symbolism in what you've described. The elve-like beings might represent nature as a whole and the dark tentacle-creature might represent what we as humans do to this planet as a collective.
Maybe this isn't the reply you were looking for, but I felt like sharing my thoughts here.
Be well Timmyt. Consider taking a break and let things sink in.
Fridge
...no need to worry...