Even segments alone look so odd that this really is a special episode. Two other reviewers have noted that prior to 2012 it had an overall score of 8.0, but later fell down dramatically, most probably due to woke concerns.
Okay, now... I will try something here:
Little House on the Praire has proven in the past many times that Native American culture is respected and upheld by its producers, most notably by Michael Landon. They didn't even have problems glorifying the "last man standing" of his tribe, against white lawmen who had no nuance. I can't say such episodes have been written to perfection, but obviously the imagery of this particular episode does not represent how LHOTP approaches the issue.
What DOES it represent then?
This is supposed to be a dream. Though it feels weird to watch some scenes from Charles Ingalls' point of view during a dream by his stepson, let's cut it some slack... Because a "dream episode" may not exactly be "the narration of a dream via filmmaking". Think of Mulholland Drive: It's a study after all. Bizarre, mind-boggling, complicated and independent from the laws of physics.
I can hear you say "Shut up, there's nothing in this as elevated or experimental as Mulholland Drive!" And your're right. This was made for fun. But it should be okay to get into undefined territory regardless of what genre you're doing.
The subconscious is a mysterious place. Today, works of fiction like this episode are frawned upon due to allegations of "appropriation". But appropriation exists in every walk of life already. It's just a fad to neglect it due to political correctness. A married couple doing a stewardess fantasy in the bedroom are appropriating a profession alright. And I don't see anything problematic with kids putting on traditional costumes of any peoples, be it related to them or not.
Given Albert lives in the 1870s, it's more than normal that his mind is absorbed by the clichés and fears relating to Indians. There's no deliberate dehumanization or insult here. It's much better than how Israeli settlers handle Palestinians, indeed.
I don't want to give this one a score because it really does look stupid on many levels, but there has to have been some intent and audience which today we have fallen so distant from that we cannot get how the episode is supposed to make us feel.