In history you read about elves, fairies, little people, spirits. It was an accepted part of reality.
But now that’s obvious nonsense and if you see fairies then you need a doctor.
Are we insane now?
Yes I know, nutrition, literacy and the scientific enlightenment. But still.
Religion is still a thing, what you’re describing is nature based religions.
Perhaps in a few decades those currently deluded will be seen by mental heath specialists rather than their “minister”. I mean Tucker said he was attacked by demons :)