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Oh yea, I forgot to include Xc in the circuit! I get it, That would put Impedance under 10K and current around 24ma. Your last paragraph gives me a lot of clarity also.
Glad you found the analysis useful. It is a horrible circuit to use on a consumer product given the risk of shock due to component failure especially if it is in a remote pack with a connecting low voltage plug to the target device. In addition the 9V created out of this circuit will not be as stable as one with a regulator or more advanced circuity.