Now, I believe that we don't quite know what the dream of unlife is right now. Am I wrong? We used to think that it was how people created undead, but GURPS Myth proved us wrong. So what could this dream do?
We read that the Watcher is thought to have never recovered the dream while in Si'anwon, so maybe this is true. While reading GURPS Myth, and Black company (which I just started to read, and must say it is a terrific book) Ducky came up with an idea.
I think that the Dream of Unlife is used to create undead out of still living creatures. That's how Balor turned the myrmidons into skeletal creatures. The myrmidon description says that no other sorcerer has been able to create myrms like that, so maybe Balor was the only one who had that dream? In the BLack company, The Lady used a similar spell on Whisper to turn her into a Taken. Hmmm... Anyone got any other ideas?