I rewatched the episode "What Kate Did" on Tuesday because I thought it might parallel the timeline with "What Kate Does". It didn't, but there was a part in the season two episode where Jack is chopping wood in the forest after a comatose Sawyer murmured "I love her" to Jack while he was out of it. Anyway Jack becomes aware that they both have it bad for the same girl so he takes care of Sawyers wounds then blows off some steam outside chopping wood.
Hurley finds Jack in the forest and asks if he's angry at Sawyer. Jack looks at Hurley confused and Hurley explains that chopping wood is what Sawyer is always doing and that Jack must be chopping wood because he's angry at Sawyer. In the mental hospital that's what they called "transference". When you act out your anger by unconsciously acting as the other person you're mad at.
Hurley's statement made me think maybe this was a hint to what's going on in LA X. Maybe when Kate made eye contact with Jack in the taxi there was a different principal of transference going on, maybe supernatural or mystical. It was the first time we saw Kate remorseful of her actions and then she went back to Claire to make up for what she did, Kate was also up-front and honest with the mechanic and later Claire in the hospital about her past. Which is not the Kate we know who uses goes cross-eyed and walks off when you ask her a direct question. She was kind of acting as if, well like how Jack would have reacted. Could LA X have a transference aspect going on, where everyone of our characters will take on some of the characteristics of each other. Maybe there strengths combined to there own. Jack acting nervous on the flight and the blood stain where Faraday was shot could be an aspect of Faraday. Jack gung ho about fixing Locke and believing nothing is irreversible could be a transfer from Locke himself.
Kind of cool. Kind of follows the principals of a Ka-Tet as described in the Dark Tower series. May be nothing but thought I'd share.
As an additional thought regarding transference or this collective conscience... maybe the smoke monster is the negative aspects of a group of people and Jacob is represents the positive aspects. Which is why Jacob is passive in allowing Ben to kill him and DemonLocke is aggressive when attacked.