Ah, i love this place. Fellow LOST enthusiasts.
So in teh casket i think is Michael, Walt's dad. The majority of the people on the street were of the same color, as well as the undertaker.
Did anyone even notice the fact that the treasure seeking freighter found the entire plane form Oceanic 815. The plane was whole and intact, complete with wrong pilot. Now we know for a fact that the 4 man "rescue team got there after the treasure seekrs found the plane because the helicopter pilot saw the tv coverage and then ended up on the island.
So, the rescuers know that the island is some sort of anomoly because they have talked to survivors and so on and so forth. I'm guessing the island has been some sort of like Bermuda triangle type place that has only been fabled and thought of as a myth...until now.
And the fact that the Oceanic 6 made it back to reality only furthers the fact that it is some sort of different dimension that can be traveld to and from, hence the odd combination of "rescuers"...for researching purposes. Kind of like that bruce Willis ateroid movie witht the totally-hot Liv Tyler where they have specialist from different fields to "explore".
I'm guessing Ben knows what really happens when you try to leave and that's why he keeps everyone there.