I will only address the stillness/awareness "generated soul" as that seems to be the hinge point. The way you described it is precisely what Castaneda was after. That is, to capture the movement "within" in order to protect it from the Eagle so it does not get recycled/dispersed after physical death. In essence, one turns into an inorganic being (or meme if you will). And that does not seem like freedom no matter how I look at it. After all, Castaneda is this enormous impersonal double-sided beacon sitting in the middle of nowhere unable to do anything just be there and his five witches that tend to "him" are like machines -- indifferent impersonal blobs of energy (?) with a singular and frighteningly unbending intent to protect and tend to the Beacon-Castaneda.

It's basically how one creates/enters heaven (no wonder heaven depicts all those saints doing nothing except praising God day and night for eons). And of course it begs the question -- would I be able to find Beacon-Castaneda if I was not immersed in his work? Or, can a non-Buddhist visit Buddhist heavens? (and note that it's a different matter with psychedelics that "transport" anyone reliably into the same realms -- chemicals give the allies their particular "nature"). But, even if one wishes to escape death in such manner, no "heaven" is permanent. Even the perceptual realms of formless infinite space or formless infinite awareness (in your parlance) come and go.

Now, for how does it all work and where are these "heavens", I can just speculate. But -- consider that if you treat quantum mechanics as finite state automata, you can derive the whole state of the system from any location. You can also derive all past and future states (information is energy is mass). Add to it Butterfly effect and the fact that we generally perceive much more than enters our immediate attention (and of course let's not forget that we also perceive input that is outside of range of our senses, it only registers as "indecipherable" noise -- hence all those outlandish and otherworldly yet still quite familiar "mind-constructs" of various "realms") and voila, you have explanation not only for the abovementioned phenomena but also e.g. Akashic records, etc. Still, it's just a speculation. And also basically a moot point (at least for me).

Oh, and one more thing. Advaita does not claim that Atman is God-self. It says that what we may register as personal self/soul (Atman) is no other than Brahman. That is completely in line with Buddhism which claims that there is no personal soul but which does not specify the nature of absolute beyond terms such as "suchness" or phrases such as "form is empty; emptiness is form."