So could one use this file for NPC romancing while camping, or any kind of "camp" conversation, and it would only trigger when the variables in the .d file had been met and after the player had clicked that button? Are there Issues with doing this?
Any kind of camping conversation, or for setting up an action you want to happen upon waking up. (For instance, I want something to happen on wake, so in the dreamscript I set DoThisThing=1, and then in the character's main script I have "If DoThisThing=1, then set DoThisThing=2 and initiate dialogue." That way, when they wake up, they see that DoThisThing=1 and off we go.)
See Banter Packs and Keto for examples of using dreamscripts. Kelsey-TOB as well, for the Anomen seduction sequence. Remember that when the dreamscript kicks in, it interrupts the actual resting portion, so you need to call RestParty() manually when your script action or ensuing dialogue has finished.
I have occasionally heard of problems that crop up when the game tries to do multiple things on rest at once, like run a dreamscript element and summon the guard to prevent you from sleeping in the city streets, but that's not a mod problem as such.