I like dreamcatchers. I've had mine for years and gave it to my stepson when he moved in with my husband and I. He would have terrible nightmares that would keep his father or I up all night trying to get him to sleep by himself. Once he learned there was something to "catch" the bad dreams, he was able to go to sleep better and faster. Since he was only four at this time, it was easier to get him to understand that an object he could see was going to do the catching. Now that he is six, he is able to understand a bit better about God's ability to do the same.
It is true that people have a bad habit of giving objects more power than they should have. However, I believe that sometimes people must do this for specific reasons, like getting a child to understand that nightmares have no control over them. And then, when they are older, to get them to understand that it was God's power that enabled the objects to work. But that without God, an object is just an object.