If I did this, I would make a room devoted to each of my dream villagers. It would be a copy of their original room with their picture in it. But I don't have that kind of dedication.
I remember the thread about the Marshal town, haha. The Kyle one cracks me up. I watched Chuggaconroy's small series on ACNL and one of the people he visited had her house decked out for Pinky.
I would never go that far, however since Cookie is not allowed to move until I AT LEAST get her picture when she does I'm making a Cookie Shrine coated with pink and patchwork furniture! As well as things she has given me.