Lyric discussion by cutewhensedated 

It sounds like someone walked out on Hayley (just assuming for the sake of making things easier) for someone else, someone that was physically "perfect". Hayley's former lover (I have to agree with Almondy, there are strong lesbian overtones here) was chasing the dream of having a very attractive girlfriend, and the first verse is her saying that she could have fought for her ex, could have chased her/him, but that would seem desperate. The hot chick breaks his/her heart, and he/she comes crawling back to Hayley. They watch a movie, and I'm not sure which of them is becoming the monster - either the ex because she's using Hayley for sex (the whole "piece of cherry pie" business), or Hayley because she's going to make the ex pay for dumping her. I think the whole "Sailor, sailor" and "Honah Lee" verse is referring to the Puff The Magic Dragon/the theme song, which Peter Yarrow (of Peter, Paul and Mary) said was about the loss of innocence/imagination as you're growing up - this fits in with the kaleidoscope dream line earlier, maybe it's referring to the ex's delusions about what life with the other person would be like? The last verse seems overtly sexual - Hayley's taking control of the relationship, sexually and otherwise. Favorite part: "Stranger, baby, always keep me in your sweet memory." Amazing line.

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