Curse you and your smartness.
I don't picture him as realistic, though. I picture him every bit as creative and open-minded as NiGHTS, but he went the other direction with it. Where NiGHTS sees a beautiful landscape, Reala sees an annoyingly bright area. Where NiGHTS sees horrible nightmares, Reala sees a comforting home.
I can't see why NiGHTS wouldn't be at home in Nightmares. (S)he is a 1st-level Nightmaren, after all.
To revise your view of Reala, I think that NiGHTS would look at Nightopia and see a playground, while Reala would see a battlefield. NiGHTS would look at the 'Pians the same way we might look at, say, a deer in the wilderness, while Reala would see the 'Pians as slaves. NiGHTS would see the land of Nightmare as a home, while Reala sees it as an empire to be upheld and fought for. It's a different application of the same approach ("every bit as creative and open-minded as NiGHTS, but gone in the other direction"), see?
As for Reala's name, that was mostly where my alternate "gray, law-worshipping" interpretation of the character came from. Personally, I think the name was chosen simply to underline the "anti-NiGHTS" aspect of his/her character.
Oh, and I refuse to accept that Reala is a male. No character can properly be called an "anti-NiGHTS" unless (s)he is as mysterious and ethereal as NiGHTS him/herself.