That was pretty close. Probably the best interpretation I've read.
There's an important thing that most people didn't catch: The orb was the sensifier and the one Morris gave Danny was just the remote. Its job was "sensifying" the unemotional objects and it has achieved that goal for years, the Danny we saw at the beginning of the game has been "sensified" and he did tell Morris about how he changed in their first conversation.
Morris knew but he ignored it because it was never about rehabilitation. He let Danny play with the remote until it messed up Danny's mind completely. The device amplified his humanity, loneliness and guilt. Danny used to treat humans like objects but now he treated objects like humans. He killed the woman and hacked her into pieces, used them to make furniture and food. Now he unconsciously brought her back to life by putting furniture and food together. All that was just for him to realize: what has been done can't be undone. (She turning into a rotting corpse).
Candy said music can be used to store memories and you'll feel it again once you play it. The song he put on at the end was the song he listened to while committing those horrible things.