I think I agree with both of you actually. The poet, writer or lyricist's conscious and intended meaning is clearly paramount, but this does not mean that the piece of work does not hold a wealth of other layers. These are also relevant in the sense that they originate in the writer's own cultural background, and their emotional landscape, which is not necessarily accessible to them on a conscious plane. For instance, I think that when someone who is deeply religious writes about the break up with their wife, the immediate intention being just that, to talk about the break up, it may still be possible to find deep in the text traces of that religious mindset that the author has.
In terms of The Gypsy's Wife, I think it is difficult not to see a religious dimension in lines such as:
"My body is the light, my body is the way" ("the light" and "the way" being an allusion to Christ)
and in a stanza such as:
"Too early for the rainbow, too early for the dove
These are the final days, this is the darkness, this is the flood
And there is no man or woman who can't be touched
But you who come between them will be judged"
(allusion to the Apocalypse)
The narrator here is, I believe, describing the loss of his wife, but perceiving this in a deeply religious way; for him, it's literally the end of the world... If LC is not aware of this aspect of his poem (which I very much doubt), then I still believe that this layer of meaning is relevant.