I have a friend that took abusive levels of melatonin in a futile effort to conquer insomnia. He said laying in bed on 9mg of melatonin without falling asleep was like dreaming while you're awake.

Instead of the 3rd eye analogy, I would describe melatonin as altering your thought patterns to be more conducive to sleep. The types of nonsense thoughts you have right before you fall asleep come sooner on melatonin.