Anyway, here was a recent interesting take on the Dream Theory on IMDB:by spira84 1 day ago (Fri Oct 16 2009 22:46:03) --------------------------------------------------------------------------------for me, the most beautiful issue of the dream theory is the psychologic aspect of it. Noodles feels pretty much guilt for what happened to Max (i.e. he got killed). So he creates in his mind a future where Max turned things upside down and took his revenge upon him. Furthermore, he also regrets hardly having raped deborah, and turns out, she became what she wanted to become, even though that was unlikely to happen. To top it off, She got togheter with Max. Noodles got the greatest possible punishment for his faults to the ones he loved the most. He felt he deserved it. But in his fantasy, their love would still remain intact: Max would want his son to be called David and Deborah would still want him to be well and safe. Max wouldn't have stayed with that blond woman (forgot her name), Noodles hated her, and didn't like the fact that Max was with her. Apparently, she ended up alone.
This interpretation leaves out of the count that eventually Noodles has his revenge by not accepting Max's offer and thus not recognizing him.
You would agree wouldn't you, that the chronology is independent of the dream theory? Even if after the opium den is not a dream, the chronology is as you described it.