I do often wonder if developing the ability to dive longer and deeper as the years pass is a result of a physical adaptation which improves my ability to suvive and function at low oxygen levels, or just a psychological adaptation that allows me to be comfortable pushing myself closer to blackout/death.
Based on the freediving science stuff ive seen (people doing science of V02 min etc) there are definitely physiological adaptations and dive reflexes etc that get more pronounced as you train for diving and dive more. For instance, the slowing of your heartbeat.
I do think c02 tolerance does play a large role as well, which is scary because its exactly as you said, your body being able to tolerate being closer to blackout. This is exactly why statics and c02 tables are horrible. Its purely increasing your ability to hold your breath without at all increasing your ability to conserve oxygen.