It's a good idea, but I plan to add some natural language processing to auto tag the meaningful nouns/verbs in the text, I wonder if this is a better approach than adding tags manually in a dream describing text.
Tags would be much too unwieldy for this. Keep it very simple. How about a short-list of categories selected from a drop-down? This would need more thought but a very short-list like: 'falling', 'lucid', 'nightmare', 'premonition', 'embarassing', 'funny' etc.
Nothing more is needed and it makes browsing by category fun for the random surfer.