It Is A Question Of Choice. Is the village real or merely a dream?
Well you pays your money and takes your choice, as they say. I suppose the Village can be both, and open to any number of interpretations on various levels.
On the surface the Village is quite the holiday camp and possibly a utopia for some, I wouldn't mind a fortnights leave there! Yet for others, those who refuse to give the information inside their heads, the village is a nightmare, and possibly one mans dream, one man's nightmare world from which No.6 is finding it difficult to wake from.
But can such a dream really be sustained for any real length of time? Is it possible for so much to be in the mind of one man? To know everything which goes on in the village, even when No.6 is nowhere in the room, such as the time of the Educational Board meeting in The General. And how could No.6 possibly know for example, the conversation between No.2 and No.9 in No.2's office in the Green Dome during Arrival, he can't!
If the Village is all in the mind, then No.6 must be mad, as suggested by No.2!
For me, the Village is actual, it exists in solid form for its action and adventure, and from which there is no escape. Built by who knows, its location known, and run by which side, is also known. the village is as real in the mind as it is in substance. Because in substance we are able to watch the prisoner being put through his trial, and afterwards it remains in the mind for as long as we don't forget, but to keep the Village in mind! So really its both, and without any trace of the allegorical!
Be seeing you