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I think that by all means they'd experience "sight", since its the minds eye and not the actual eye, Im not blind however, so i wouldn't truly know,
I wonder if they can "see" in their dreams too
by all means it seems plausible, but since blind people use different sense data, the sight of something to a blind person would be different than that of a sighted person

just like if dogs dream in colour?

Sounds to me like it's just part of the natural light spectrum, perhaps creating a rainbow effect from surrounding water particles (moisture?) in the air.