Yeah the dream totally spoils it, even if it might have been misdirection. I doubt that the author intended that - if he misdirected, it should have been how they arrived in some kind of good place and the holes were there because they had been selected to form a perfect society or something.
I found it pretty funny though. Dance Dance Revolution.

@kid_icarus
Yes, in addtion to that, just entering the holes could represent how we sometimes do bad things or surrender ourselves to a "destiny" that we don't want but become fixated on.