Dr. Murchison didn't need to know John would assume Dr. Edwards identity. In fact, John's assumption of Dr. Edward's identity worked against Dr. Murchison.
John's burn is from a plane crash. Because of the crash, he meets Dr. Edwards. As part of John's therapy, Dr. Edwards suggests John join him in a skiing trip in Gabriel Valley. But first, Dr. Edwards and John have lunch at the 21 Club.
At the 21 Club, Dr. Murchison accused the real Dr. Edwards of stealing his job (in John's presence). Murchison then follows Edwards to Gabriel Valley and waits for Edwards on the slope near a cliff. Murchison shoots Edwards, who continues his downward momentum and skis off the cliff. By shooting Edwards, Murchison gets rid of his replacement -- someone Murchison believed stole his job.
John is several feet behind Edwards and witnesses the event. John may be neurotic but he is not insane. Because of his guilt complex from his tragic past, Edwards' death shocks John into losing his memory. Because his psyche cannot accept Edwards is dead and because he feels irrationally responsible, John assumes Edwards' identity (Edwards cannot be dead because I [John] am Edwards). John is not posing. He believes he is Edwards.
Imagine Dr. Murchison's surprise when John appears at Green Manor as Edwards. He believes he has murdered his replacement, and a replacement still shows up. If he "outs" John, Murchison admits having met Edwards, and risks John remembering the argument at the 21 Club. If you murdered someone, would you want people remembering you had an argument with the victim before his death?
Constance's observation of John's burn starts the ball rolling in the recovery of his memory.
The Salvador Dali arrangement added to the plot. It gave enough of what happened away for Constance to solve a portion of what happened, but did not explain how Edwards was shot or who shot Edwards. Besides, dreams are not always linear or even coherent.
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