Paul, you wrote in Serendip,

Jake, about your essay DREAMS ARE FOR FREE:

Not so much an addition as a thought. The notion of dreams in relation to literary devices may be a quite important one. Asking whether dreams use literary devices is an interesting way to begin exploring the issue, but may turn out to be backwards in an intriguing way. Arguably, dreams precede language and literary devices, both in individual lives and in human evolution. And are expressions of unconscious aspects of brain function.
From this it might follow (a not uncommon suggestion) that analysis of dreams could help to characterize the "logic" of unconscious neural processing, which would include your arguments on parody and neologisms.
And, here's a new thought (at least for me), that might further follow that the ORIGIN of literary devices is in fact in dreams, i.e., that literary devices are extensions into the language realm of the logic of the unconscious. From this perspective, your inquiry takes on some added interest and a possible new direction: the question is not so much whether one can find any literary devices used in dreams, as whether there exist literary devices which are NOT "mirrored" in dream logic.

Indeed Paul, you have posited convincingly that dreams precede language, and therefore literature. After all, animals dream, as discovered a long time ago, while only man is literate. In fact, I see now that literature --as a developed stage of literacy-- is a good example of an Emergent.
Therefore, you are supporting the thesis expounded by the author of "The Creative Act" (sorry, no reference) that when dealing with literature, the two kinds of thinking --Janusian and homospatial-- are mirror images of devices used by dreams. The fascinating aspect of my doctor-friend' story is that his dreams "answered," so to speak, his quest to find if dreams use a hitherto unknown device (except in literature): parody.
Not only that, the use of neologisms, and bi-linguality (the "hermetic" writing) show that dreams may interact with the conscious. In the present case the dream was making fun of the dreamer: "So you doubted that I could use parody? I'll show you also bi-lingualism, and as a bonus, also neologism!"
Paul, I could not doubt that ALL literary devices are derived from dream processes.