"When you think of what you'd like the updated dream images to be in comparison to the current ones, do any particular details come to mind?"
I'd probably want to keep a more pixelated style but more detailed than the sprites that I'm using, similar to the character portraits that are in the game. I'll likely add an effect that shifts the image around to give a hazy "dream-like" effect.
"Understandable! My guess was that when children were present, little goodies may have been occasionally hidden for them. Since the village had been lacking children for years and Colby treats the village like family, I thought he might view the player as a newly adopted child of sorts. Perhaps Colby wanted Michael to experience what everyone else did when they were young."
Oh wow, I really like that! I think it adds a lot of much needed characterization for Colby. Would you mind if I used that?
"Edit: Does this seem like a good time to mention any noticeable spelling or grammatical errors? I've seen a few before, but wanted to focus on the more important things first."
Absolutely! If you've noticed any spelling/grammar errors, I'd be interested to see them.
"As for the credits, I forgot to mention that my name is Emily Wise."
Noted! Thanks, Emily!
"Also, which dog breed or mix is Huxley?"
I imagined him as a beagle mix. I grew up with a beagle so I'm biased. :P