I didn't particularly like the dream sequences in that, like you said, they are creepy. However, I did feel that they added a certain sense of, "Holy Crap! That was wrong, and I really need to step up my game or this thing is going to totally take me over." It at least intensified the story plot.
And I'd rather not get the dream sequences with every character. Everyone has their own preferences when it comes to storytelling.
