I've never seen Waking Life. Reading the reviews at Amazon.com, I found it highly rated there and it has a 7.6 rating out of 10 rating at IMDB.com.

From one of the reviews on Amazon.com, it seems it addresses the Dream Argument, so thanks for the quote; I'm going to get the movie.

It's great that you can watch this (presumably illegally) for free on Youtube. I humbly submit that if you like it, you should support the filmmakers, and the production of unique movies like Waking Life, by buying the DVD for an extremely reasonable $7.60 on amazon.