I believe that the physical world and dream world are very similar, the main difference being a dream world is much more malleable due to its subjectivity rather than the objectiveness of the physical world. But both take place within the whole of consciousness. To view the physical as a "place" is the same illusion as not realizing in a dream that you're dreaming.
No matter what you're doing - LD, AP, OBE, Dreaming, sleeping, walking down the street - all take place within consciousness. A very quick "Frank's astral model":
Physical = F1
Dreams, LD's, subjective AP's = F2
Belief system afterlives = F3
Realization of illusion & other incomprehensible stuff = F4
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