I mean, you would think it's just that, a dream, an illusion, a mockery of reality, and that's how it's played in the manga, like an actual dream, the only POV that exists is the dreamer, however, in the anime version, the Dream World seems like a world on its own, with the separate characters involved in the dream having their own histories, backstories, and relationships. Like, how they interact with each other when Tenten isn't around...this is all weird.