This doesn't seem to be the case, as Dream Bubbles aren't this...alien, even if they are usually prone to swing the dreamers around. The presence of people that hail from other parts unknown to us make it even less believable. So we are most likely alive.

[She listens with interest. Rose hasn't seen a troll yet.]

May I?

[And almost immediately she extends a hand, although she doesn't go all the way to poke Kanaya's face...although it's evident that's what she's asking permission for.]