Trying to explaining the entire system surrounding Gods and Goddesses may seem difficult, especially to mundanes or newbies. However, part of this is only due to a lack of the proper terminology. We know what we want to say; all we need is the right words.
Most people, especially if they've had any sort of religious training, seem to be familiar with the concept of Transcendent Divine (Divine seperate from the world). This is one of the hallmarks of Christianity and similar religions. Most people are also familiar with the idea of pantheism/Immanent Divine (everything is Divine, because everything is the Divine, and the Divine is everything.) But the Immanent and Transcendent views are partially at odds with each other; one implies that the Divine is connected to, or actually is, the world, while the other implies that the Divine is seperate.
Hence, the introduction of a new term, Panentheism. Panentheism is a merging of the two, involving an incarnate Deity (typical of the Transcendant view) while also calling for the characteristics of pantheism.
However, that, in and of itself, is only a clarification of the concept that most pagans are pantheists. While that is true, it is slightly more correct to say that many are panentheists.
However, that still leaves the concept of multiple Deities. At it's most stripped-down, basic form, Wicca calls for two Deities, the Lord and the Lady, the God and the Goddess. However, these two are merely opposite sides of the same coin. According to the belief system, they are merely aspects of the same Divine Power, the All (or whatever appropriate name you wish to use.) So, technically, that makes the core of Wicca centered on a Dualistic Monism - two faces of a universal power that is all Divinity.
However, this naturally gives rise to more questioning. What is the purpose of pantheons, then? After all, if the core is the Lord and Lady, why bother with individual Deities?
It all comes down to approachability. The All is distant, in the simple fact that it is so immense. It is difficult to relate to something that is the sum total of everything. (Try really reconciling yourself with the concept of infinate. It's difficult to grok.)
So, instead of trying to wrestle with something this large, we personify it a little, break it down into something a bit easier to deal with. From this, the "first level" of personification, we get the Lord and Lady, the two fundamental forces. You can think of light and dark, chaos and order, yin and yang... two opposites that, between the two of them, form the fusion of creation.
Still, they're still a bit difficult to relate to. After all, splitting the All in half may help, but it's still a bit staggering how much that encompasses. To bring in some post-modern psychology, think of how many different "hats" you might wear: child, sibling, parent, boss, teacher, student, etc. The Lord and Lady have similiar qualities, only magnified. Hence, we get a "second level" of personification. This yields the separate, named Deities (Odin, Morrigan, Legba, etc.). *Now* we've got something a bit easier to work with - something similar to us, with personality, likes and dislikes, but still retaining the aspects of the Divine. It's a way of approaching the All in an easier way.
It's also a way of specifying what type of energy you want to deal with. By using a specific Deity as an archetype, the energy we tap into is slightly "pre-shaped." As an example, if the energy is already predisposed towards justice (say, for instance, Tyr), it makes it that much easier to use it to bring about justice than "starting from scratch."
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