1. In my opinion, there is no way to distinguish whether we are dreaming or awake, even if we compare intrinsic functions of reality like gravity or attribute abilities to ourselves such as the power to fly. However, by exercising a reduction of possibilities down to absurdism, I could say that there is no point in a superior intelligence deciding to control our minds and experiences just because it can, as it would be a very absurd and meaningless reason to play with the perception of human experience.

2. With the advancement of psychological studies, now that we know more about how our mind works, we could say that Saint Augustine was wrong, since even the most violent or irrational acts we commit in our dreams are the product of our deepest desires, many of them buried deep within our subconscious.

3. I prefer consequentialism because it can show the closest perspective of what the results of our actions would be, whether good or bad. For example, dreaming that we deliver medicine to someone who needs it and in real life we haven't done it yet, but since we dreamed the scenario beforehand, we know that the person will improve with the medicine; otherwise, that person will worsen, and we might even feel guilt.

4. For me, the main function is to give us the ability to experience a simulation of different scenarios. Once these experiences are lived, we could better solve the problems we have in daily life and avoid bad outcomes.