The Dink Network

Maybe have a few wacked-out dream areas set up for Dink to beat, whenever he gets tired enough to fall asleep. You can really compress maps with different visions. You can also make any given area seem larger by playing around with the map number.

If Dink beats all the enemies without dying he could wake up well rested. If he dies partway through he could wake up from a nightmare instead and not receive as big of a health restoration.