It also seems to remove my ability to contextualize things which means I can't find flaws in my understanding of something as easily. This works for both good/euphoric things, where I feel like I know something (but really I can't find the flaws in my reasoning), and for bad/anxiety things, where I can feel really bad and spiral on something because I get focused on one particularly bad aspect and can't see the full picture.

I feel like this is why drugs can sometimes help with creative things, especially if you're familiar with the drug, as long as you can harness this decontextualization to put more of your focus on one thing, kind of like clearing your mind. However, its usually fruitless/harmful in anything requiring complex reasoning/judgement because it is reducing your ability to see the big picture.

As well as the complete opposite effect for certain individuals, which I think is just as important to study to help those that have these reactions. I can imagine the mythology built around visions of Hell/negative afterlife could have just as easily been sparked by negative psychedelic experiences.

I think it's a different phenomenon, personally - on drugs like MDMA I get the same euphoric effect but without the accompanying sense that I've learned anything about the universe.