My point is just that IF the dream theory is correct, that wouldn't be treating the audience like chumps, nor would it mean that the themes of the 1968 scenes are lost. I would argue in fact that all these themes are strengthened by the fact that it's a dream
Couldn't disagree with you more. Bailey in 1968 offers Noodles a chance for revenge. Noodles doesn't take it. There is a huge moral difference between "dreaming" a temptation (and dreaming its avoidance) and actually experiencing the temptation and then choosing to avoid it. A man cannot be held responsible for what he dreams. Neither can what he dreams be anything to his credit. Jurisprudence limits itself to the deeds (or sometime lack of same) of waking life. When Noodles refuses to kill Bailey, he is commiting a moral act. If he is only doing that in a dream state, he is at best (and even this isn't certain, human thought in dream states is unreliable) signalling an intention to commit a moral act. But an intention is not a deed. Ask any jurist.
It's funny that you call Noodles refusal to shoot Mr Bailey an act of redemption (whether you consider it to be a major or minor or even non-existent theme). I always thought it was about the general themes of time and memories. Noodles consciously refuses to accept the new reality he confronts in his old age, the prefers to remain living in the 'reality' he has been morosely living with for decades. There is a conscious dissonance. That is why he constantly refers to him as Mr Bailey and refuses to address him as Max. That's why he leaves and refuses to delve into the details of the past few decades since Noodles self-imposed exile. It's not an act of redemption-it is refusing to drag himself out of the past he has become used to and has become his reality.
I'm not sure if this been posted here but does anyone know about this release of the 250 minute restoration - http://www.amazon.co.uk/Once-Upon-Time-America-volta/dp/B009HX6PH8 ?