What I proposed using this phenomenon was a brief but pregnant theory; not new at all to eastern mysticism but somewhat new to the researchers on dreams. If you could see, dream inside dream, then, it may reach to any number of levels. Again: just because you were in a dream I and then woke up in a dream II, you came to the conclusion that it was a dream inside dream; likewise, it is very much possible that, you may wake up to another reality and find this reality of yours to be a dream.
A Zen story
Once Zhuangzi dreamt he was a butterfly, a butterfly flitting and fluttering around, happy with himself and doing as he pleased. He didn't know he was Zhuangzi. Suddenly he woke up and there he was, solid and unmistakable Zhuangzi. But he didn't know if he was Zhuangzi who had dreamt he was a butterfly, or a butterfly dreaming he was Zhuangzi. Between Zhuangzi and a butterfly there must be some distinction! This is called the Transformation of Things. (2, tr. Burton Watson 1968:49)
The king Janaka(father of Janaki, Sita in the epic Ramayana) had the similar dream.
[ July, 26, 2010]