Sister I believe that Islam offer us more freedom in comparison to the modern-materialistic society or traditional culture, it doesn’t put restrictions on most of our actions, rather channelize them … this hadith is rather referring to something else, a believing person knows the nature of reality that what we see from our five senses are mere an illusion, which gives you a feeling of being trapped inside your body and this 3 dimensional world we experienced using our five senses. We will know reality not in this world, but once we die and wake up on the Day of Judgement.

Wallah o alam …