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If everyone is in limited but constant and unavoidable telepathic contact with anyone nearby there are immediate consequences: for example, it is easy to perceive guilt (much, much reduced crime), love and lack thereof (straightforward, happy and boring engagements), schizophrenia and other types of major mental illness (no psychotic monster can remain undetected), violent intentions (much reduced surprise attacks), and other strong emotions.
A protagonist becoming mad would do so in plain sight; without contrived obstacles he woud get psychiatric treatment before things get interesting.
Something important but unclear in the description is the variance between passive projections in "a kind of spiritual world we can't always see but we can feel" and "an etherial version of themselves" who has to be more like a person if "they communicate with each other through song".
Are people able to consciously affect their ethereal projections? If it is possible, how? Are projections autonomous? If they are, what are their powers and motivations?
Great points, but I don't actually think the telepathy is going to harm anything, mostly because it isn't really telepathy, not solidly anyway. I can feel how people are feeling, I can sense it when I'm around them, I thought was a common thing. Not like I know what they are thinking, but I pick up on weather they are hiding something or not, if they are lonely, or feeling depressed. I think thought I pick up on subtly facial expressions, tones of voice, and movements. Unfortunately even if everyone could pick up on that kind of thing to a more hightened degree than what I described, it still wouldn't reduce crime or anything, reason being it's not substantial enough evidence.
and in answere to your questions - No they are not, reason being their projections are simply images of who they are inside. I guess they could if they changed who they were... but not through commands. Mostly because no one can see that spiritual world. The only way it would be possible is if they changed themselves, causing the projection to sing a different song.
are they autonomous... hmm... that's something I really need to think about, what a great question. Do they have free will? Are they aware of their own existence? I'm thinking they are the person, kind of like a sub-conscience. So the answere is possible yes, but only so long as they are connected to the individual, because they are that individual. But I need to think more on that, thanks so much for asking that question.