The song's about Stevie Nicks in the future.
Danny is asking Stevie, in the future, if Mick, John, and Lindsey think she sucks now that she's a thousand years old.
The golden sand represents her past cocaine abuse. If you look at a beach from a mile or so offshore, it kind of looks like cocaine. That was how she got so high up in the sky.
When she "flies down from her high" she starts writing gems like When I See You Again. By this point, "she is gone." She stays gone for a long time and actually quits Fleetwood mac. Actually she wasn't gone, it's just that nobody paid attention to her anymore since she got fat.
Even though Lindsey beat Stevie's ass and was jealous of her because she was prettier than him, he still waited to see her join the band again sometime so he could peddle his solo material as a Fleetwood mac album. He's been on his own to wander for too long, and he can see his life is getting pretty aimless. It's been so long since she left him.
Then she appears from the waters edge (after a much needed diet/detox) and Fleetwood Mac gets back together and makes a smash live album that sells millions. Then a bunch of years go by and now she's a thousand years old and they don't have Christine McVie anymore.
So basically it's Danny asking Stevie a question, but then he tells her what's gonna happen anyways. The song is about Danny asking her how she's doing, but then he doesn't give her a chance to answer so he answers it for her by predicting the future. That's it.
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