No, no, no. It will be an adventure game. Have you ever played Broken Sword or Monkey Island?
If not - an adventure game is a game with much riddles and thinking, and it does not focus much on battle and gameplay, only story and riddles.
I have to think a little bit more about the graphics. One thing I do know is that it will be pixel art (Scroll down to pixel art) and it will be emotional-changing, as your character switches different emotions, both his dreams and ingame graphics change.
Of course, that is one of the main purposes of the game - education about lucid dreaming.
Thats my first thought about the game - full interactiveness and nonlinearness. You change the storyline as you go through the game - each time you play the game from the beggining, it will probably be different than the last time you played.
Sorry about grammar (its late in my country),