Scene Five p.68
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Blanche's lies give her the life she dreams of living.
Blanche prefers artificiality rather than reality so she tries escape truth through lies like that. Similar to the paper lantern hiding her looks.
Blanches' life at the kowolskis is arguably based on lies. And I feel that the letter to Shep is an escalation of the lies. However what is different from these untruths to earlier lies within the book, is the notion that Stanley knows that they are not true - and due to this the audience knows, as opposed to suspects that blanche is fibbing.
As well as this Williams uses this letter, and the whole shep 'ideal', to deepen the audiences understanding and the physical portrayal of Blanches downfall.