I've often said that I'm on the side of the fence that says that when Masa says that he and Mune embody Melchior's dreams that he isn't speaking in a literal sense...
The ancient Red Rock has been
passed down through the ages.
From it, a magic pendant and a knife
were made.
We embody Melchior's dreams,
sealed, within the knife...
But I've never actually made a case for my arguement. Recently I was playing through Chrono Trigger again (my current Memory Card doesn't have a save w/all of the endings & extras) and I was at the point when Frog opens the cave to Magus' Castle and he said something that interested me...
Mine name is Glenn!
Cyrus's hopes and dreams...
And now the Masamune...
So I began to think, besides perhaps in Enhansa in Zeal, when is 'dreams' used in a literal sense, when do 'dreams' create some kind of physical manifestation? Of course, I immediately thought of the whole "Our Planet's Dream", so I pondered that as well. It doesn't seem as though the planet, the Entity, is really dreaming, right? It took a backseat, or perhaps it
couldn't do anything, to Lavos' interference in the original timeline, but then it intervened and brought about the events of Chrono Trigger and thus, it's 'dream' is the destruction of Lavos. In a similar manner, Frog finally becomes Cyrus's hopes and dreams by truely taking up the Masamune and then Masa & Mune embody Melchior's dreams of the destruction of the Mammon Machine and the fall of Queen Zeal (or perhaps he wanted the restoration of the original). Also, where would Doreen fit into Melchior's dreams if they were, in fact, literally his dreams? Masa doesn't really mention Doreen in that little shpeel.
So there, I've done it to the best of my ability. I've made my case finally and I'm sticking to it! For now at least, I guess...*shrugs*