I think villain/antagonist dream is a completely valid and actually interesting idea but my interest dissappears the instant they make dream just irredeemably cruel.
Most of the time it's a case of a sympathetic nightmare story but wanting someone clearly in the wrong (having dream know but ignore NM abuse).
It also ends up having the same issue as canon dreamtale, one of the characters being so flat that they feel like a plot device and not a character (corrupted NM is still very flat to me, unless someone can convince me otherwise)
Also this is basically a non issue in the current fandom. it's just that some of the most known examples are also the ones with these flaws
