mgran! Yes, kids are resilient that way. My son had known there was something "different" about me for many years before dx. So he was like, "ok, it has a name." He was totally nonplussed.
This may sound weird, but I suppose if you're going to hallucinate something, at least it was something pretty (and the Cheshire Cat is a pretty cool character). I'm glad you are working on managing things.... many well wishes on that.