Sorry for sperging again (another sleepless night).
Another problem I have with the dream world is that... for being a "dream," its a bit too coherent. Dreams are supposed to be strange and weird--a thing that Yume Nikki nails perfectly. Omori though feels like just a terminally uncreative person trying to make Mario worlds--here's the water level, here's the desert, here's the forest, etc.--with structure that makes too much sense and in fact, a lot of real-world logic (the bicycles that power the thing in that one area).
Then of course there's the actual narratives, where things like Sweetheart and Space Boyfriend are too consistent across multiple nights. Speaking as someone who keeps a dream diary, I have never seen a dream work like this--if a person ever recurs in my dreams, they're gonna be under completely different circumstances.
It really feels like they came up with a narrative first, then decided later to say it was a dream in order to justify all the things they couldn't think of an actual rationale for--or just to excuse the lolrandom bits they didn't want to bother making sense of.
Also as other people have said, its a bit stupid that during the fight with Aubrey the game tries to be all "this is real life, you idiot!" then proceeds to have every battle in the real world work just like the ones in the dream (to the point where all the skills and equipment buffs carry over) anyway.
So essentially, the game is feeling like a mish-mash of ideas Omocat thought were cool, strung together with duck tape.