The two most overdone types of stories are "it was all a dream" and
"it was all a simulation to test humans." What I gather is that this
story was BOTH. Be assured...you won't see any episode of B5 in which
it's all a dream unless you know, in advance, that it's a dream...it won't
be a bail-out clause later. (I mention this only because there's one
episode I'm playing with where a character is injured, and dreaming, and
so we see the dream going on, but again, we'd know that going in.) I
think the other approach is just cheating the audience.