Hybrid dreams are still being made and I've actually made a few. You can find some documentation in the deskscapes install folder on your PC.
The best way to learn is to open the hybrid file of one of the ones that came with Deskscapes with notepad and study what they have done. You can change the settings and see what effects they make as well.
The reason I've backed away from making them is every NWA file that I've made that has constant motion hesitates at the loop.I've tried and tried but am unable to resolve it. I've also looked at others in the gallery and they have the same issue. I've found this to be the case on multiple machines including a freshly loaded system with a brand new install of DeskScapes.
I've been able to work around this on some but if I want to create a dream that has constant motion, I have no choice but to go with video.