miss laura  , there have been times i have taken a sabbatical from therapy. i only did this when i felt comfortable with the progress i had made. once new things i couldn't seem to handle on my own would i step up my therapy regimine.
if we are constantly over-analyzing ourselves i don't think as much progress can be made. it is too stagnant. so balance imo is the key. distractions help too. for me it was jig saw puzzles. it quieted my mind cause i was focusing on the puzzle not rumination about me.also stepping outside the box in our real life can be a gratifying experience for personal growth. we are much more capable than we recognize. our mental illness doesn't define who we are. it is only a segment of our total self. progress in my state of being has been the key for positive change. a willingness to change and seek help and doing the footwork was a vital part of any success i've made.
to answer your primary question yes, you can improve! have hope.   and NO U R not crazy.
my experience has been this-at first there was a lot of focus on learning to live healthier (in mind). as time progressed i improved. today for the most part i am content and happy. so if that defines normal i expect i am.
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Do not let your fire go out, spark by irreplaceable spark, in the hopeless swamps of the approximate, the not-quite, the not-yet, the not-at-all. Do not let the hero in your soul perish, in lonely frustration for the life you deserved, but have never been able to reach. Check your road and the nature of your battle.
The world you desired can be won. It exists, it is real, it is possible, it is yours..~Ayn Rand
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