It's not my place to judge, since Drakeonis is the GM, but I think that the character is a tad bit overpowered for the following reasons:
-Fear Manipulation is something no one can counter and, with the story requiring us sometimes to fight amongst ourselves, it renders us defenseless against it.
-Dreamland does not need any requirement for the attack to work, so it also cannot be countered.
-Since Shadow Bodies and Shadowcraft do not have limits, you could probably create over-armed armies and just solo the entire Vitus invasion and the Supernovas too.
-For your last power, you say yourself that it can scare away or even kill even the biggest threats, with the only limit being focus.
-As for the weakness, as long as there is not a character who can manipulate sandman sand, I find it impossible for someone to exploit it.
Of course, that's my personal opinion and I have nothing against you, but the character seems unbalanced to me :/