What's really weird is how dream-reality always makes sense to you in context, regardless of how absurd or random it is, because your self awareness and identity are being simulated the same way, both in dreams and in reality. It's like a virtual machine inside a virtual machine.
I experience lucid dreams I can control quite frequently. The thing I do most often is let the dream play out, but go back in (dream) time to replay certain scenes differently if I'm not happy with the outcome.
It's really pretty cool - like being in some kind of super-advanced VR simulation, or under the influence of some impossible drug. If anyone ever figures out tech to make this just happen (kind of like simulation VR goggles in scifi films), they are going to be very, very rich.
Edit: Perhaps immersive psychedelics (LSD, ketamine) are similar actually. Speculatively, one could define "real" as our ability to doubt, "fantasy" as the suspension of doubt.
In this framework dreaming is when the evidence collecting side becomes a lot less rigorous than it usually is, so it says "sure, why not" without reference to a stimulus (i.e. a way to be falsified). In other words it's the brain's predictions continuously coming true.
SlateStarCodex has a nice article[1] about this.
> The key insight: the brain is a multi-layer prediction machine. All neural processing consists of two streams: a bottom-up stream of sense data, and a top-down stream of predictions. These streams interface at each level of processing, comparing themselves to each other and adjusting themselves as necessary.
> ...
> You’re not seeing the world as it is, exactly. You’re seeing your predictions about the world, cashed out as expected sensations, then shaped/constrained by the actual sense data.
[1] https://slatestarcodex.com/2017/09/05/book-review-surfing-un...