No, reality isn't losing coherence -- at least any more than it is normally. This surreal picnic table does indeed flow toward and over a railing. It's an art installation by Michael Beitz at the Bemis Center for Contemporary Arts in Nebraska.
Link | Video | Artist's Website | Photos: Bemis Center
Previously by Michael Beitz: The Walls Have Ears
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Can't see how this could be called "art", but sure is a nice piece of good design.
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