In my opinion dreams will fail because if this very thing. They basically made a game engine, unlike LBP which was very defined in what it was (though had tools for a lot of creativity) Dreams is basically an engine. Want to make your own games? Get unreal.
Exactly. From a dev point of view they're treating it like it's a game engine that's super artist friendly but from a management point of view they're treating it like a game. They need to fully commit to one of the ideas instead of failing to do neither.