> Films are more like dreams than like real life.

Yes! The other happy accident of movies that contribute to the dream-like quality, besides the lower frame rate, is the edit. As Walter Murch says in "In the Blink of an Eye", we don't object to jumps in time or location when we watch a film. As humans we understand what has happened, despite such a thing being impossible in reality. The only time we ever experience jumps in time and location is when we dream.

I would go further and say that a really good film, well edited, induces a dreamlike state in the viewer.

And going even further than that, a popular film being viewed by thousands of people at once is as though those people are dreaming the same dream.