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I mean just about all the mysteries happened on the island. In real life nothing spectacular or super natural happened and that was the dream?
Theory/Spoilers ahead...
I have my own theory about the whole thing (part of why I couldn't sleep Sunday), but the main part of it is that the light was the source of a Creationist-type power, the power in all humans, and what they sought. Basically every human in the Lost universe had some power to mess with the rules a bit if they had enough faith that something was true, resulting in pretty much everything we thought of as supernatural world-wide in the show aside from ghosts/souls themselves.
Whoever was the guardian of the island was stronger in this power - Mother and then Jacob defined the rules of the island, and those rules were pretty arbitrary based on their choices. This was pretty much hammered at us in the past few episodes - the Senet game, the increasingly simplified passing of power, Ben's last on-island comment to Hurley... Jacob's strong power was also inadvertently the real source of Smokey. At the time he truly believed what he was doing would result in a fate worse than death, so it did. This is why Jack didn't suffer the same fate.
As for the island itself, it was the result of physical manifestation of this power, and the cave itself a manifestation of the connection to this power. That's why you have the cheesy plug metaphor - that's what it was, just a manifestation of something less tangible. You don't need a detailed explanation because it's arbitrary. When they severed the link to the power, the rules became "normal", smokey became mortal, and the island started to fall to pieces - rather than "unleashing" anything. I think the wine metaphor was really just about the island plus Mother and Jacob's rules (the bottle and cork), and Smokey (the wine) - the same terminology wasn't used when talking about the light directly, which was primarily referred to as "going out".
Finally you could also say that the whole alt-universe, which was explicitly stated as being created by the souls of those who passed, is another example of the same power, just after death, on "the other side".
The crazy vague bits come into play when you start thinking about what this means regarding the origin of the universe, the connection between the island and the afterlife, etc. That can be interpreted a lot of ways, but with all of the various religions explicitly shown during the show, I don't think it's really supposed to matter either. Totally up for interpretation.
So, it ends up explaining a lot, but doesn't provide a geeky scifi explanation I'm sure many of us would have liked after all these years. The metaphysical catch-all does feel like a cop-out. A lot of people spent a lot of time picking at every detail, and in the end the story points and laughs at such behavior. Personally I think it's kind of cool what they did - I mean, they encouraged this behavior all along, and the purgatory bit will be one of the better writer-vs-viewer gags of all time IMO. Plus, that interaction with the viewer was part of what made Lost great all along.