>>536050731
>Are daisy, Pauline, Rosalina and Mario real or just figments of Peach's dream?
For this particular story? Yes. Every character Peach meets inside the Dream Cage, with the exception of Kamek, is only a creation of her own. Think about those characters being Dreamy versions of themselves the same way we see people we know inside our dreams.
Fun fact: Mario is relegated to a side actor in this tale and there's an in-story reason for that.
>At the beginning of the story, Peach finds Mario and informs him of Kamek's antics, expecting him to save the day as he always does.
>Mario mentions that he tried, but gets restrained by an unknown force that prevents him everytime from taking direct action.
>Peach then is forced to take the lead on the journey as a result.
>Later on when Peach learns she is inside a dream, she talks about it with Mario, telling him that he is also part of her dream.
>She then confesses that her mind may have subconsciously designed him to be a sitting duck out of guilt for always having to depend on him.
>Its only when Peach gets over that guilt and gains confidence to take the lead that Mario breaks free of his restraint, allowing him to be a party member (albeit an optional one).