(I loved that series)
I don't believe life is a dream. We are aware and can interact with things in life. If all of it was a dream then it wouldnt be the same as our dream in our life (the dream supposedly). My point is, dreams to us, we cannot interact, We do not feel anything in the dream. Maybe emotionally, I always feel the rush of adrenaline in my dream but I never feel pain for example. But we can feel pain, so life is NOT a dream. i've also died in my dreams many a time. But maybe this dream is different. If I life were a dream, it maybe a dream within a dream within a dream. Maybe death is a dream too and waking up from death is a dream too, aybe even talking about this is a dream.
Point is, we will never know.
There's the question of who the dreamer is though. A god? The universe itself?