Annan considered himself merely a mortal.
But if he were to choose between being a "coward" or a "lunatic," Annan would certainly not be the former.
If, at that moment, the "similar to me" Annan saw was truly The Worm, then Annan would not have been consumed by such fear, anger, and despair.
Later, Annan regained the memories he had lost and reclaimed the personality of "Black Annan."
Yet, Annan's personality did not undergo a drastic transformation. This meant that even without the reversed Winter Heart shielding him from negative emotions, Annan would not become a mortal who succumbs to madness before unnamable horrors.
But at that time, Annan was unaware of this.
He had elevated The Worm's existence in his mind to an infinite height. For Annan had heard too many people recount this entity.