My personal dreams have always felt "real". Not all my dreams have some kind of I to begin with, though (I occasionally have the dreams when there is no "myself" or "I" - not even in the form of bodiless thoughts on what is going on - there is only the following of events, kind of from a camera point of view). And then I have had some fairly odd ones where there is presumably at least two selves simultaneously, and such things. Not always do I have human form, sometimes shapeshifting and other oddities are present, and physical laws and biological functions may differ. (Got a finger cut off? No worries, it will grow back in a month or so - I have never witnessed it actually happening after an dreamworld injury, I just know it eventually would happen ... almost exactly how you *know* fingernails and hair grow back if cut, but never really *see* it aside of noticing tat things have changed compared to some date in the past.) I will mention, though, that the laws always tend to stay perfectly consistent for the duration of the dream, though they may vary dream-from-dream. 
There are dreams which are essentially derivates from real-life events (have visited the forums; was halfway through reading a book by [Jack] in one dream during the time I was proofreading the novel for the first time - not a book of The Prophecy series, interestingly enough) and movies/computer games (only with the added immersion of running around in the world as the character, aware that I am just playing the game), and then are more or less purely alternate worlds (rarely they might feature people or limited locations I actually know)... And these are indeed complete worlds. In the dreams, I know what happened ten, twenty years ago, I have an entire life's worth of made-up memories, locations and places (though I cannot obviously tell whether these are formed from the beginning or only as my dream-self happens to think back... There is usually a very clear succession of events, I feel physical pain, the lurch of falling, the motion and position of my body, pressure, water and wind, temperature, I feel hungry and taste the food I eat, get physically exhausted (and occasionally fall asleep in the dream when I do ... talk about Inception)... Well, everything. The dream-worlds feel as real as the usual life, while my brain is keeping them up. (Never understood the Inception totem - your brain can easily recreate a version of it that behaves as it should. There is no way to ensure it won't, and recentness might not even decrease the likeliness. I personally have dreamed things I had never laid eyes until not long before I went to sleep aplenty...)
I have never actually been killed in my dreams (aside those which are computer-game immersions, and then it is very concretely perceived as the character dieing, not me), but getting an arm torn off, stabbed, impaled, rent with claws, even cutting my own utterly mangled hand off with a knife (since damage of this kind will never heal) ... those things are fairly common in those of the alternate-world scenarios which are of apocalyptic, warlike or chase nature. When I was very young other people my dream-self was allied to tended to be cut down like nothing in those dreams (and I find this kind of helplessness infinitely nastier than any physical pain - which I endure extremely well anyway and am fairly apathetic about - or threat to my own person ... not that I'd have working self-preservation instincts to speak of, or be able to feel fear in the typical sense), but in later life the dream-self has learned to fight and typically takes up the role of a defender. And being a defender is in any case better than having to watch people you(r dream self) care(s) about fall.
 - If I pause to think over the dream I had and run it briefly through my mind right after waking up, I will remember it. If I don't, I'll forget it. (Which is pretty common - there is more or less a mechanism for garbage collecting dreams in place ... sometimes it takes brief wakings between periods of sleep with it. Don't wake people up to inform of them something, only to let them fall back asleep, since there is a significant possibility they would either not remember any of it or only be able to vaguely recall that there was something they should have remembered.)

 - I still can't entirely comprehend where Thaler is taking her interpretation of what Aemoten said, though. He in reality [i]never[/i] belittled her, even less told her she was evil, and would [i]never[/i] do something of the kind. ...And before after they had already went back into the borderhouse she was mostly just confused and frustrated and didn't want to deal with this whole mess. What exactly happened in her mind after they went back in?
(Guess it shows how subjective thing mind can be ... something that can be witnessed in actuality all the time.)