The atmosphere is very comfy, the low poly look is really well done. I think you should focus on tightening the level design and signposting of what to do. Once I entered the dream the area was just too vast and I had no idea where to go. You might walk on those brick walls or swim somewhere and find nothing of interest for minutes.
Interactable objects should have some kind of faint glow or other indicator that they can be used. I know the game is called dream child, but I still didn't initially realize that I can use the bed to progress into a dream world.