Actually, getting back to the topic of Mr. Goblin I was wondering the same thing all the time while reading. Why not give him the nightmare bottles? If the Goblins only feed on them, there is no harm or perhaps it is dangerous, does their magical strength increase, their size? They become more vile, I don't know in the fic I only understood that Kc was hungry because of the 'food shortage' of nightmares thanks to moon.
The goblins don't just feed on nightmares. They're responsible for inflicting some of them in the first place. Why would Moon want to cooperate with someone, willingly, who is partly the cause of such nightmares?
Moon doesn't care about the well-beings of goblins, they could starve to death and he wouldn't bat an eye. All he cares about are the children and putting an end to their nightly torment.
He never would have made that deal if Lunar's life hadn't depended on it. And even if the vault did over flow, Moon, being his stubborn self, would have found other means of dealing with the quantity.
Plus, he retains some memories from his time in the Realm and has a gut feeling that goblins must be avoided at all costs.
Though speaking of the vault...I wonder how it's holding up now...
