I told myself it was in my head for quite a long time. I really wanted that to be true. If it had been solely the act of intercourse that was affected then you could attribute it to performance anxiety feeding off fears that the drug would trouble my sexual health, but when you actually stop getting morning erections and completely lose libido for months at a time it begins to look increasingly unlikely that it's psychosomatic. No surprise I haven't had a proper relationship in the two years I've been on finasteride.
Despite this, I'm still on the drug. :/ Lowered my dose ths week to .25 mg, but it's still too early to say whether it's working. I'm buying some spironolactone in preparation for the worst - that the side-effects are still intolerable, even at a reduced dose. I really hope that spironolactone stuff is effective.
In answer to your questions,
1) Yes, it's possible, I've heard people say they suffered from side-effects that left after a month or two.
2) Of course it's possible, but, to me at least, an awareness that side-effects could be in your head precludes them actually being "in your head"! Does that make sense? Or maybe that's not how 'nocebo' effect work? Maybe it can still function despite an awareness of itself?
Rather, it suggests to me a desire so deep to see the medication work that you're willing to ascribe to yourself subconcious, irrational fears that the medication is causing the harmful effects, when in actual fact you aren't - it really is causing the harmful effects! That's what I think I did for a time. And to think I poked fun at the people who were claiming side-effects - probably to mask my own insecurity that I was experiencing them too!