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Basically, everything I wanted to say. It makes more sense that she dragged the dreams into her shared dream. If all she was doing was dragging the mental selves of the Ponyville residents into her dream, then the dream wouldn't have to be any bigger than a normal dream.This is my take on it. Singular dreams are already confirmed to be 2A structures, and Luna herself states she is already capable of creating shared dreams.
However, the shared dream with every resident of Ponyville takes great strain on her and her magical ability (though she does manage to use magic to attack and slightly harm the Tantabus), which does tie it into her UES. Finally, she outright states that it's taking all of he strength to "hold such a massive dream together," implying it is larger in size than the average 2A dream.
With her own words taken into context, I would argue that she definitely made a massive merged dream out of everyone's 2A dream strictures and continuously sustained it, rather than soley bringing other dream selves into her dream.
So, personally speaking, I believe context implies a merging of dreams is occurring.