ZealKnight, you're really aggressive when it comes to analysis.
The thing is... Dreamstone isn't as simple of "absorbing power". Obviously it is capable (as seen with being used against Magus and lowering his magic defense, as well as being used to destroy the Mammon Machine), but it also seems capable of storing and projecting power. Also, the Dreamstone is crucial to the very existence of the Dream Species, particularly Masa and Mune.
Not really, just comes off that way. Deep down I'm questioning every word.
Turnip doesn't rely on Dream Stone. Then again that guy needs to sleep in order for him to exist. Perhaps it absorbed Melchior's dream, so that it could sleep for him. Don't forget the Masamune/Red Knife is still a blade. It absorbs Magus's magic which weakens him and cuts him.
As for the Frozen Flame, assuming it caused evolution in humans (the CC script is vague; might be the FF, might be Lavos, if it is even valid to separate the two), it is that it produced the ability, in humans, to use magic.
Yeah, what I said. The evolution in humans doesn't matter, all that matters is that they gained magic from it.
The how isn't made clear.
Lets be honest, does that really matter. At all. I think about this a lot. Does it matter "how" people absorb magic? I mean think about, humans don't normally have the power to absorb anything, but still many examples of it happening. Kefka, Sephiroth, Kuja, Humans in Chrono Series, and Exdeath are all examples of beings that absorb magic or any source of power in Jap RPGs. I'm thinking it's a Jap legend/religious thing. Like a real world influence. Just an idea. But I don't think how they absorb magic matters. It's that they did.
However, we do know that it produces a particular and rare source of energy: anti-annihilation energy. I likewise don't recall anyone attributing such power to the Sun Stone.
Do you have any real idea what anti-annihilation energy is? All we know is that the Sun Stone was used as the old source of magic, then the FF replaced it, because it produces it's own magic and does not rely on the Sun or any other source. They harnessed it's magic. Now I don't know if perhaps Zealians were not using magic themselves until the Frozen Flame, but I would assume so. Or maybe what I inferred wasn't what they implied.