I’m not sure if i really liked the “play within a play” part either. But at least the scene where Jason Schwartzman’s character goes out of the asteroid city play to the director, and says something along the lines of “i don’t understand” and “am i doing it right”, seems important. My interpretation is that the whole movie is about the meaning of life and that scene in a way directly addresses it.

What do you mean with “unnerving chant”? The sleep part?