Really cool. To me though they should be apps and 2 separate ones at that, even if the functionality can be used in both ways. If you were to just market one app as a 'dream catcher' that is synced to an alarm that allows people to record their dreams, I think that would clarify your value proposition. Separate from that is the app that wakes you up with a previous recording you set.

They offer different things even if they both occur when someone is waking up..

Either way, well done!