Not to be confused with the eight possible interpretations of the DMT experience

I tend to accept this sort of veiw, it nicely explains how one can create their realty with their thoughts. If I understand correctly, in this view, when one looks up, the top of the sky is located within ones skull.

Meh. They aren't mutually exclusive, and some of them (e.g. #2 and #7) could mean the same thing.

Why limited to only 8 interpretations? Who's to say?

Indeed those interpretations are comfortable logically and spiritually speaking as acceptable.. and they certainly are helpful towards understanding 'reality' for those who connect with them. Taking small-big steps towards understanding one of those interpretations is important to understanding all of them. Or at least entertaining one and seeing how it functions within your own consensus and conscious perception. Others ideas of 'reality' will not thrive for everyone, though. The most important understanding is your own understanding.

Reality, IMO, exists simultaneously in 2 mutually contradictive states.

1) only the mind and its thoughts can be assumed to be real, because everything else is created by the mind's perception of it

2) everything that can be perceived is real, because if the mind is the only reality, then all that which it creates by perception is reality to the individual.

I don't see how those are contradictory?