Guyomech-
How does this work, in terms of physics? I have no idea

. Here I am speaking more on the outer layer, the overall concept of whats going on, not the specifics of it.
I really do like your approach though and have, and continue to, consider that every day. If we really are creating our own dreams, then we are greatly more wonderful beings than I show appreciation for.
I really don't hold down one idea over another when it comes to these questions. I think we're all just reaching for something that can't be fully reached for at this moment.
In the end, if we get a real answer, then I think we'll find that we were all trying to describe the same thing, just using different "languages" and phrases to describe it.
InnerPathsToOuterSpace and daveyboy91
From InnerPath's post - "I tend to treat reality as subjective, as in what I am experiencing in the hear and now. When i am dreaming that is also my reality at the time."
From daveyboy's post - "In dreams you live in the present moment, and you don't worry about the past or the future"
Isn't that wonderful how the dream becomes your reality, and (unless you become lucid), you really have no memory or concern for this life here? You live in the present moment, as your environment shifts miraculously around you and people pop up here and there. In a dream its like you have no long term memory. You just constantly roll with whats going on, without questioning it, no matter how ridiculous it can get. That's why living in the present here is so great, if you pull it off, you feel free.