Yes, I agree that Rumplrgoldfan has some very good insight.
What I thought was interesting… was how bothered Regina was by the fact that Kathryn was clearly beginning to think for herself and was separating from the ‘character’ that had been created for her in Storybrooke.
I recall Kathryn said to Regina, “What they have is real; it’s true. My marriage to David it just was like an illusion. I don’t know how it happened, but it was never real.” Kathryn was beginning to realize that the memories she were false–an illusion. She is starting to break away from the curse. To me this parallels what Prince James said to the siren, “I don’t want an illusion. I want reality or nothing.” In OUAT, one theme that keeps appearing is this idea that reality is better than illusion.
"That’s how you know you’ve really got a home. When you leave it, there’s this feeling that you can’t shake. You just miss it." Neal Cassidy