I guess you could roleplay that your character is just going along with the seduction attempt in order to unlock power.
I actually would like if the choice is to submit to the entity for power or deny it to avoid corruption but gain no power. I think that is a more interesting choice than choose A for power 1 or B for power 2.
I only had the "where are you" dream on my main character. It wouldn't occur to him that this would have anything to do with gaining power.
This would be interesting but they would need to modify the rest mechanic, otherwise the implied tadpole urgency would lock out many people. I would prefer something else offering the power by dangling the dream person in front of you as a reward, this would allow for more variants of what they mean to you.
Offering power by dangling the dream person as a reward? Reward for what? That doesn’t make any sense.
But if your character isn’t interested or doesn’t trust the dream seducer then denying them is an option, so what’s the problem?
I think this is a problem of pacing of the first Act, narratively you're supposed to feel an urgent need to go forward, but meta-narratively you understand there is no real threat and want to see more content. so Larian is in effect writing a story they assume their players will disregard for gamey reasons, which is why we have so much tied to long rest-cutscenes and the tadpole dreams. I don't think they should assume players will rest after every combat, I think that because that's how I played on my first run, putting off a long rest for as long as possible, I never saw the tadpole dreams either for that reason.
How much sense will these dreams even make after you reach Moonrise Towers?