My imagination works in pretty much the same way. It can be wonderful at times, but there is a definite downside to it.
I've never decided whether the richness of my imaginary world outweighs its effect on the real world, which is to make it seem pale and disappointing when I do open my eyes. But then it gives me great creativity and is also at the root of my problem solving abilities, because I can so easily imagine each possibility and play it out in my head before deciding what to do. That, and it's a nice way to kill time when waiting in line.
It also seems linked to memory, because there are certain memories from many years ago that are so clear that I can actually close my eyes and feel like it literally just happened. It's as if my senses are triggered - not with the total clarity you get when something is actually happening to you, of course, but about as close as you can get. For example, I can imagine the way the cold air felt and shiver. I can smell things too; again, not for real but as if I just smelled it. And by the way, the latter doesn't need to be triggered by an actual scent or even anything I've smelled recently. Just the other day, I was remembering this soup I used to eat as a child - and not since - and that smell came right back to me.
I guess it's more accurate to say that I don't so much remember things as I experience them again. Which is very appealing to the time traveler in me.
But the dark side . . . it can get extremely disturbing. One of my greatest fears since I was very young has been someone waiting in the shadows to attack me. I could imagine it happening so clearly that I would respond almost as if it were about to. Even now that I'm 40, I'm still childishly afraid of being alone in the dark, even in my own home. But there are so many other things as well. As a parent, I am constantly battling images of horrifying things happening to my children. Or to my husband or myself. It's so intense that I will react to it with the kind of horror that I have to hold back, because if I let it go, I could see myself feeling exactly the same way I would if it actually happened.
For example, I've fallen apart in grief over my husband dying . . . and he's still alive. And I catch glimpses of what the real grief would feel like even though I've never lost anyone that close to me. Again, if I allowed myself to, I really do believe that it would feel completely real.
But it just occurred to me that my intense imagination is probably responsible for my empathy. I'm horrible at expressing it, so awkward and socially inept and resistant to showing any vulnerability with others. Which is why sometimes I start thinking I must be really cold and unfeeling. But then I have to remind myself that in my head, I can feel it very strongly. For example, when I hear about a mother losing a child, I'll ache for her in a way that affects me very deeply.
So yes, I think the phrase "curse or ability" describes this quite well!