i'm not sure why you had reports of night terrors. in my humble experience i have never seen this nor is it reported in the literature. i can speculate that your dose or time allowed between premed and induction weren't sufficient but that's only a guess. in my personal n of maybe 2-300 nasal premeds with 1-2ug/kg and approx 15 min between delivery and induction i have never once had a kid struggle or scream with the mask so dunno why any of em would get nightmares.
the fact that you have never been impressed and your opinion that your usual recipe would work just as well tell me that you possibly haven't selected the right kids/surgeries for dexmed use.
i completely agree that midaz works great the majority of the time (especially in the outpt ENT setting).
dexmed is a great premed for a couple of specific situations - the kid who has had paradoxical agitation with versed. the bouncing off the wall kid +/- adhd who has a history of emergence delirium. the fat T&A kid with obstruction - especially for this population <3yo when a little bit of airway swelling makes respiratory depression particularly dangerous.
the beauties of dexmed as a nasal premed (or as an intraop IV med) for kids - no respiratory depression, no paradoxical agitation, less emergence delirium, tasteless and odorless, fantastic analgesic (i give zero opiates to young kids with obstruction for T&A), reliable, etc.
the downsides - expensive and not always available, less familiarity (with surgeons, nurses, older partners), bradycardia. the bradycardia is as reliable as the sedation and can be pretty pronounced - i don't use dexmed in kids with down's. in normal kids however, i have never had a problem - if i give dexmed as a premed i always give glyco before laryngoscopy. if i give it intraop for tonsils i always do so as the mouth retractor goes in - the 2 effects cancel each other nicely.
back to clonidine - still don't use it, especially in the outpt setting.