I think the Channel 5 presenter (who seems to be something of a Daria fan) summed it up nicely when at the end of Depth Takes A Holiday today she said "I've seen it three times and I still don't understand it".
Since Daria doesn't wake up at the end it was presumably not a dream, and since the warped reality was shared by the other characters she was presumably not on drugs, which leaves me to conclude that the Daria team are trying to convince me that *I'm* on drugs and that I imagined the whole thing. However I taped it and I can confirm that it's still there, so if they're trying to mess with my head they failed. I think.
Although this whole thing obviously took place in some alternate reality and not the canonical Daria universe, it was kind of intriguing to see Daria take charge of a bunch of people who were seemingly a fair bit older than herself (they all seemed to be about Trent's age). Although she didn't seem to be quite herself in this episode, nevertheless we saw how she has an "old soul" (for want of a better term), fitting in better with the next generation up than her own. It does look like she'd be better off hanging out with Trent and a bunch of twentysomethings than with fellow teenagers.
-Shez.