with your summary - in fact it's a lot more coherent than ones I've encountered which began from less (actual experience) yet spawned a series of expen$ive 'text'books.
But..
(To oversimplify) I begin from a base assumption that ~"Most of what we 'know' is Wrong". On most all scales, that is - and particularly where ideas like God come in, freighted with the imaginations of millennia.
Yes, to me unarguably - there are connections among: today's events & fears/anxieties about those, the sigma of all previous (esp. recurrent situations), and dreamstate.. incl. how well (or not) we remember having been In that state. Lots of etc.s
So to me, there can be *no* wonderfully useful distillation of the above into a process. (Though it's occasionally helpful to try to find a model to hang it on, otherwise we can't grok any part of 'it'. We only know metaphor - it's the mind's machine/assembly language IMhO)
Finally, 'dreams' appear to me to be entirely intertwined with such ideas as one's 'being', awareness of that and.. then whatever one has finally come to understand. Homogenizing that-all is to me, a pointless exercise - though it provides many academic opportunities and will continue to do so.
As you are likely aware, there are many ancient and modern models which find little difference between the above 'dream states' and the 'waking dream-state'. The very Large word Reality is most often taken to be about "what one sees, experiences? in the waking dream-state".
When you reject that very-popular notion.. pop-psych dims to meaninglessness, except for the smarmy and cynical process of social engineering (most often for personal profit). I reject that notion, so you see - -
Cheers, sleep tight
Ashton