I don't really have anything to expand on. I'm familiar with Alan Watts work, not so much Jung's. The quote from him is a regular poster's 'sig', and just something I've been considering recently.
You do make an interesting point above. "No human power could restore us to sanity" - I would tend to agree. In fact, I am kinda sure of that. I'm not familiar with your sources, but I get the gist.
Have to disagree though that psychoanalysis does not beget any personal progress, but this is my experience. It depends on the person and their own personal history and set of circumstances?