Fairy tales and myths often seem to have arisen from dreams and vice versa, so the stereotypical vision of a place such as camelot highlights the qualities of spirituality, chivalry and adventure inherent in each of us.
Psychological / emotional perspective: Camelot is a representation of a perfect society even up to and including its downfall and ending, so such a dream will put into perspective areas in life we feel we have not reached our potential.
Material aspects: As legends and myths take on a life of their own, sometimes bearing little relationship to the original occurrence, they become somewhat sanitized and personalized to fit with the patterns of society, at any particular time. Archetypal images, such as the authoritative king (arthur), the young knight (lancelot) setting out on a journey, or merlin the magician, thus become available through these dream characters to help us understand ourselves.
Gives gender - specific: It will depend upon the dreamer’s own personal development how such a dream is interpreted. In a woman’s dream, for instance, it can help her come to terms with her treatment by, or of, the men in her life; whereas in a man’s dream he may be dealing with his own personal journey to maturity.