(Above: Allan Hobson)
In [Allan Hobson]’s most recent review paper in Nature reviews Neuroscience , he compares the dream state to that of proto consciousness. As per him, proto consciousness is made up of raw emotions and perceptions while secondary consciousness is made up of awareness about perceptions and emotions and meta cognitive processes. He now endows dreams/REM state with some functional significance. He believes that dreams provide and opportunity for inbuilt genetic scripts and schema to be played out and fine tuned against external real-world scenarios. In this view dreams would still be significant as they provide a window to out internal scripts that are present from birth. He doesn’t put this across in so many words and this is my interpretation, but that is what I could sort of intuit.