That is an excellent excerpt, very foundational. And very old -- I wish LaBerge continued producing NiightLight; it was a handy newsletter. I highly recommend digging up this issue and others to anyone who cares about this stuff.

That said, what also might be included in all this is the quality of memory in the dream -- I think the article actually talks a bit about that. For instance, one main reason your mind is addled in a dream is because it fails to remember even the most obvious details of your life (like you're asleep in bed, or that the person talking to you has been dead for 10 years, where you were 10 minutes ago). The level to which you are able to hang onto the memories that define your self corresponds directly to the level of your lucidity.