One theory that I subscribe to is that the drug increases the brain's neuroplasticity, allowing for new pathways to be created between sometimes unrelated parts of the brain.
Being conscious allows one to guide (but not control heh) this process, where the user can pick a subject to think about and immerse oneself into a audiovisual/emotional/cognitive hallucinatory experience that follows related to that subject. Inevitably the most pressing issues of one's life will surface, allowing the user to examine them from all these different angles - accept, forgive, love and heal.