It seems like this technology is available in the Zeo. It would make a great tool for dream work.
1) A Dream Alarm. You could set it to wake you up either 5/10/15/20 min after entering into REM. When you are woke while in the dream state, your dream is right there for you to remember easily. One think I am really bad at. This way you could write it down in a dream journal and continue your sleep, and the next morning you have notes on your dreams that should help you remember them. Hopefully you get good enough at remembering them so that you don't need to use this feature in the future.
2) A Dream alert to let you turn it into a lucid dream. Same as above, but with a lighter alarm, like a tone that goes off after 30 seconds or so. After you enter REM sleep maybe it could be an alert that talks to you "Your Dreaming....you are dreaming"
I know I can hear the outside world in my dreams, I think if I kept hearing "your are dreaming" while dreaming, I just might become lucid.
What do you guys think?