Yeah, I'm curious to know what Mm and Sony's expectations for the game were before I start making assumptions about it's "failure."
And I get why a PC version makes sense, but it also feels antithetical to the game's main mission, which was to have an easily accessible game creator that didn't require a robust PC. If Mm wants to do it, then go for it. I think at this point, it might not be a bad idea to help boost the PS4/5 experience, and give game makers an avenue towards publishing outside of Dreams. I'd also hope if they did, they'd introduce KB/M support for the PS4/5 version.
I think what Mm needs is to have two creation modes: simplified and expert. Create a mode that's very template-heavy, with grid-locked asset placement and other restrictions, in order to easily create games and levels that are a bit more quality than some of the jankier stuff. Right now, the time it takes to create a quality level/game is insane, and the results of that work too often go unnoticed in-game. If you could hop into an FPS template and create some bonkers level in an hour, it might feel more worthwhile. But as it stands now, that task could take you several hours, and that's after you do the numerous tutorials required to understand the game.
Dreams lives and dies by the contributions of the community. Its best feature is a robust catalogue of pre-made assets that are community-created. Being able to use that "asset pack" more easily could help the game immensely with the more causal crowd.
And yeah, a F2P "Dreams Player" would be a great idea. Get those games more visibility outside of the people already invested in Dreams.