Depraved? Highly unlikely. For an answer to your question about the meaning of the dream, let’s consult the professional literature, shall we?

In general, something has to go terribly wrong for you to become attracted to your daughter in the icky way. I'll offer a few tips to keep that from happening.

If “insane” refers to hallucinations, delusions, wildly unpredictable behavior, self-destructiveness, and the potential to spend years in prison or a state hospital, then the answer is: yes, drugs can make you insane.

You might imagine that ink blots (aka, the Rorschach Test) are an artifact of a more primitive time in psychology. But this old test has grown up a bit, and it is frequently used to help make important decisions.