It can be inferred from the passage that dream-content is best analyzed:
By viewing icons as words and attributing them with symbols.
The passage describes various ways of analyzing dreams; a good suggestion comes forth in the last paragraph “It would of course, be incorrect to attempt to read these symbols in accordance with their values as pictures,” and “A correct judgment of the picture- puzzle is possible only if I make no such objections to the whole and its parts, and if, on the contrary, I take the trouble to replace each image by a syllable or word which it may represent by virtue of some allusion or relation.”