If I'm not mistaken this episode is written by the incomparable Violet Welles.
Yes Violet Welles wrote both of today's episodes (as well as both of tomorrow's) ...
It's one of my favorites among the dream sequences--too many of them tend to be pretty straightforward and that's not how people seem to dream. This had enough bizarre flavor to be creepy and yet plausible at the same time.
... but it's unfortunate that we can't quite be sure how much of the premise of the dream we can attribute to her. It's my understanding that plot and sequences were developed during marathon group sessions between all the writers (often at Sam Hall's kitchen table), which were then presented to DC to either accept, contribute or shoot down, then Sam Hall and/or Gordon Russell would breakdown the episodes into act and scene outlines, which were then fleshed out by an individual writer. We can probably attribute every bit of dialogue to Ms. Welles - and isn't it funny how once you get accustomed to the different writers' styles, you can pretty much identify the writer of each episode solely based on the way they write their dialogue.
![Wink ;)](http://www.dsboards.com/SMF/Smileys/classic/wink.gif)
It's just too bad that the surviving writers haven't gotten together to do their own book about the history of DS. Different ones have given us glimpses and tid bits over the years, but I think it would be absolutely fascinating to get a complete history from their perspectives, who came up with what, what sorts of ideas DC shot down, and so forth - particularly if it wasn't published and, consequently, filtered through the Fest or Pomegranate.
![Wink #2 [wink2]](http://www.dsboards.com/SMF/Smileys/classic/wink2.gif)
As far as this dream sequence goes, it's one of my favorites, too, Luciaphil, for the exact same reasons you mention. (However, in a specific case during Leviathans, I think they went WAY overboard on the bizarreness quotient in one dream because to this day I still have no idea how it supposedly accomplished what it was intended to. :-/ But maybe someone will come up with a theory once we've gotten to episode #904.)