I have them here, though I didn't before the dreams started.
When the powers first manifested and I couldn't control them, yes, that's exactly what they did - they played on everyone's fears to give them horrible nightmares, and I would have nightmares of other people's fears, too. It was a mess.
Now that things are controlled, I mostly give people visions of what they want most or fear most (my choice), or use psionic arrows to put people to sleep (or make them see the visions in their own heads while they lay unconscious). The arrows can heal people, too, but that isn't as effective.