I didn't comment for a while on this one because it took some time to let the words sink in. I am following you here into a dream world. Someone could definitely write a short story about this land. The closest I've seen was the "woods between worlds" one of the chapters of the Magician's Nephew by C.S. Lewis. If you have a minute it is a worthwhile read.
Look at chapter 3 page 16, "The wood beyond worlds"
http://www.samizdat.qc.ca/arts/lit/PDFs/MagiciansNephew_CSL.pdf