I'm sorry not a lot of people responded to your post. I do 95% agree with ILADVOCATE. The info he gave you is pretty much on target.
I wish I could tell you that this type of Depression would just go away like the flu or cold, but unfortunatly that is not usually the case. The only 5% left that I was talking about is HOPE. You never know what new treatments are around the corner and that means hope for a cure or maybe even a treatment so good that it eliminates 100% of our symptoms.
I can't sit here and act like I know what it's like to have a Psychotoc element to my condition. I suffer from very severe Refractory depression that is treatment resistant. Not a cake walk either. I'm sure we both suffer in our own way.
Just know that for you there are treatments and there is hope. Just make sure you have a good Psychiatrist and follow his plan of action for you.
I think you would mean depression with psychotic features and like most psychiatric disabilities it lasts a lifetime as does the need for medication. Recovery rates depend on the individual person. As I've posted medications that are more specifically targeted to the right receptors and will have a better response rate and safer side effect profile are in development so treatment will improve in the coming years. I've posted about antipsychotics but I know new anti-depressents are in development as is an understanding of them. The need for life time treatment however will not change.