Muddha you've just made my heart race! Why did I not think of that? i think you're right, the baby has Downs.
I couldn't figure out why they showed the scene at the end with the little girl, and the Donovan song. I assumed I suppose that they wanted to show the other side of the story, and that it was a slightly cheesy nod to the 'other' reality.
Dh questioned this and I was quite superior with him, as normally he's as thick as two short planks at subtle messages. Dammit, I may have to eat my words now!