Yeah, all the dream characters vanish from existence, and for his trouble Link ends up...clinging to a piece of driftwood in the middle of the ocean. Greeeaaat. At least the Wind Fish is happy (the ingrate). :P

There's got to be a better way of organizing walkthrough information so you don't have to have been following the walkthrough from the beginning. Even better is for the game itself to have some way of checking what quests you're currently on—this is something that I think Planescape: Torment did really well (among many other things, damn that game was great).