>>2680738>>2680660From what I read they were kind of forced to include the bear stuff by one of the artists to get them to work on it. They then used it to portray "Childish Lain" one of her three personas. She wears it gradually less as "Advanced Lain" takes over and at the end when she's talking to her father's spirit in the wired he says something along the lines of "You wont need that anymore" signifying that Lain's childish side was gone along with her corporeal form and the vices that come with it. So I guess in that way she was free of fear as well as innocence in a way which is what the suit represented.
