That's just it. She's ALIVE but she doesn't EXIST because nobody knows who she is. All the relationships she made were gone, and she was just a body, not a person. Also, when her 'other self' was doing things that Lain would not normally do, she realizes that it doesn't matter who you are, it's what people think of you that makes you who you are. Basically the whole thing is a very personal based show for something that is about someone who becomes addicted to the net.