Hell, or rather my brief experience of it.

[Angrboda]

@Borunel:

One needs to differentiate between the different types of dreaming, and what appears to be occurring in each type with reference to human studies and studies based on animal models. In general, there tend to be two types of dream. I hope you'll forgive my laziness, but I'm just going to dump my notes from a science documentary describing and documenting the two types:

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REM SLEEP:
[ETA: Fanciful, surreal dreams]
Motor centers de-activated.
Highlevel of neural activity.
Can boost creativity (from REM sleep alone, or dreams within REM sleep?).
Negative self-concept, self-regard words; Possible amygdaloid involvement.
Activation-synthesis hypothesis, stem activation stimulating cortical activity (Hobson & McCarley). Projection into future?

NON-REM SLEEP:
[ETA: Compressed, skill rehearsal dreams]
Compressed content.
Positive self-concept, self-regard words.
Skill rehearsal; replay of recent memory activity (e.g. skiing simulator).
In rats, fragmented time-compressed memories (Matthew Wilson, MIT).

notes based on my viewing of:

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So depending on which specific type of dream you were referring to, your comments may be accurate. However, as an overall description of dreaming, it suffers from over-generality and imprecision.