Pilots are trained to ignore sensory input like the feel of gravity, the feel of being in a dive/climb/bank and use the instruments to make determinations about what the aircraft is doing. Usually those feelings are dead wrong.
It's amazing how flying into a cloud bank, even though you've been flying straight and level, suddenly your body screams at you that you're in a descending bank or something. You just learn to disregard those senses and trust the instruments.
As far as looking out the window, it was cloudy, at night, and at high altitude. At high altitude in straight and level flight your nose is pointed at blue sky, not the visual horizon.
When I experienced it it was in clear skies, so it would be rather obvious that it was happening just by looking out of the window, but apparently this can happen to inexperienced pilots in clouds.
If I remember correctly, the average lifetime of a non-instrument trained pilot in instrument only conditions is measured in seconds, because these ghosting effects are so strong.
I think my comment on the subject is near the top: to summarize, it's not as dramatic as all that. :)
To understand why the answer to the rest of your questions is also "no", you have to understand the psychology of vertigo in situations like this (http://www.studentpilot.com/articles/medical_articles/articl...).
http://en.wikipedia.org/wiki/Graveyard_spiral
This is what killed JFK Jr.