Just finished playing this for the first time and I kinda do agree that it's a bit heavy on the dream sequences.
I really like the characters of this game, particularly the 3 main female characters, and I have a soft spot for all them. The MC is a bit of an asshole, but when he's attentive and caring, even when he's begrudgingly doing it, is when he's at his best.
As for the story, I really liked the concept of these 4 broken people being healed and getting better by being on the island together, and I most enjoy the parts in the real world where you see the interactions between them all, particularly the sweet way Alice is with Katie and the MC, the tough yet vulnerable demeanour of Katie, and the snappy dialogue between all of them is good too and sounds very real at times.
But the lengthy dream sequences kind of lose me a bit. I don't mind the fantasy element but it reminds me a lot of when I did creative writing exams at school. I never finished them and my teacher would always tell me it was because I let my imagination run too wild and focused too much on establishing the fictional world, the lore, the characters, etc, that I never even got to the middle of the story by the end of the exam. It feels a little bit like that here where the story is doing a lot early on to establish the lore of the story and the history of the characters when it could be paced out more gradually.
Overall I do enjoy this game very much and can honestly say that I never thought I'd be into loli characters, but Alice has got me hook, line, and sinker.