Consider the trauma of your upbringing, this otherworld is an ideal plane you long to escape to in your mind away from the trauma.
I think it can be both. Spirituality is a broad term. Going to other dimensions in dreams can be a form of spirituality. Does it feel spiritual to you? Then it is. I've had similar dreams where I've met beings that I could only describe as having other-worldly qualities and I felt like I was in the presence of something sacred.