Alley's dream is her afterlife.The Alley in the dream says that, when she arrived in this place, she was given domain over all the realms she dreamt of as a child. But all of those worlds are completely devoid of life, and slowly crumbling. They are dead because she is dead. What really seals it, though, is what dream Alley says to our Alley after telling her all of this: "By all means, go. Go. You'll be back soon enough. You see, I remember this conversation. From the other direction."