I think that this song could be about the same girl he wrote "Happy Alone" about. Maybe she 'killed him' once, and he 're-discovered' her in a sense, but he's worried that she might break his heart again. This is the only (?) time he's referenced the title of another song, so I think it might be a reference to that girl. It's all about his visions for their future together, though he knows it probably won't happen and he's worried about heartbreak.
As for the babies walking this town, I dunno. Could be a reference to future generations (not literally their children) in the same situations that they were in when they were younger?
I think that this song could be about the same girl he wrote "Happy Alone" about. Maybe she 'killed him' once, and he 're-discovered' her in a sense, but he's worried that she might break his heart again. This is the only (?) time he's referenced the title of another song, so I think it might be a reference to that girl. It's all about his visions for their future together, though he knows it probably won't happen and he's worried about heartbreak.
As for the babies walking this town, I dunno. Could be a reference to future generations (not literally their children) in the same situations that they were in when they were younger?