If one has more or less ability to recollect one’s nighttime dreams upon “awakening” in the morning, is that because of the degree of naive realism?
Yes, it is precisely because of the degree of naive realism. What is naive realism? It means believing things are real. It is naively thinking that there is some sort of ultimate reality to what is going on. However, there is no ultimate reality to what is going on.
To do dream yoga, you need to see the daytime as a dream. If you don’t see the daytime activity in a dreamlike manner, you won't be able to see the nighttime phenomena in a dreamlike manner either. You need to do both. It doesn’t matter what the dreams are. The point is to get rid of the bias about all the phenomena of the universe. All phenomena are arising out of God’s presence. Every single demon, including Satan himself, came from God. If you don’t believe that, read the Bible. Who created the heavens and the earth? Satan? No one really says this directly enough: everything comes from God, good and bad. The Tao teachings help us to understand this, as do Christ’s teaching, as do the Buddha teachings.
Now we know a little about dream yoga. This could be practiced by a beginning practitioner a little bit perhaps, and an advanced practitioner very much.