I really like that as a little bit of play. It's a really good way of handling the "recurring nightmare" plot idea, and it's vague enough it could easily be adapted to any system or setting.
I may see if my group need a level bump between published adventures, and if they do I might use this.
Really like the detail on the various groups that are coming into the village at the same time as the PC's - angels, devils, shifters, some NPC's that are hiding. There is lots to go on there!