This makes no sense. If I'm putting my dreams into words, that's already as good as it's gonna get. Why make it even lossier by involving AI? In fact, it's even worse than just lossy since incorrect details will be added in!
This idea is also pretty obvious. Who hasn't tried describing a dream to AI and been disappointed with the slop it generates? It will never look anything like what was imagined. Most of the imagery in my mind is unique to stuff I have experienced in my real life offline. AI training data is biased very far away from anything so candid, and if the images are wrong then they also cannot convey the same emotions that the words did.
This problem occurs again and again with damn near everything AI generates. All emotion and style are replaced with the kind of stale and cold feelings you only get from stock photos, trashy low effort music, and corporate speak.