- Doubtful, as Thomas the Rhymer is a genuine mythological figure, and Gaiman has used the same tune with different lyrics elsewhere (notably in Marvel 1602).
But in the Sandman story "A Dream of a Thousand Cats", Morpheus implies that humans came to rule the world (formerly ruled by cats) by retroactively changing reality through sharing a common dream. It is also shown that DC Comics super-villain Doctor Destiny was able to use a ruby containing some of Dream's power to control physical reality in the waking world. Destruction also asserts that each of the Endless defines not only their own area of control, but also its opposite. Thus Dream, as defining everything that does not exist or never happened, also defines reality.
The Endless are not technically supposed to couple with humans. If they do catastrophic things can happen. But Dream has indicated in the past that he could work around this by making at least one mortal lover (Nada) into a goddess if she agreed to be with him. Helping Titania become more than a mortal human could have been a step towards a relationship. Whether they were lovers, or merely close friends, Dream might have changed reality for Titania in order to make her into the Fairie Queen she has become. This could also account for her enormous magical powers, which dwarf those of virtually all human practitioners of magic. It would also explain the confusing spread of possible timelines leading to Tim's existence, since Dream might have overwritten various histories to produce the one in which Titania became what she wants to be.