what are the dangers and benefits of living in a dream world, as lily accused of doing?

The benefits, especially for Lilly, are many. A dream world helps her cope with her past. The death of her mother and the abuse of her father haunt Lilly. Her dream world enables Lilly to cope. I suppose the dangers are the obvious. Lilly could lose touch with her own reality. She could become disengaged from her own life and unable to cope with reality.