Nice idea (I think)
I like the feel of the levels. That's what at least 4 of the 5 stars I gave are for.
This has to be one of the most claustrophobic games I've played! The movement is delayed and awkward and the "flight" (slowed jumps) highly limited, all of it gives the feeling of crawling through mud. I'm sure this was aiming to be that dreamlike paralysis but I think a more dreamy atmosphere could have done that better than frustrating gameplay.
"I had never smelt anything in dreams before..."
I think I know the studies this was based on but I have to say I'm sceptical of said studies (I certainly do smell and taste things in my dreams, all sorts of things), and this aside I'm not sure most people NOTICE that they don't smell or taste anything during dreams.
Having your character having read that people didn't smell during dreams and applying that during this dream (quite lucid but it already was) would have worked better I think.
But it doesn't matter. I gave up on Level 3 after I again missed an awkward jump set and fell right to the bottom (I'd been trying to miss so that I reset to the high ledge; failed in that).