We do. That's what yourdomain.dreamhosters.com is. A temp URL And if I go to yourdomain.dreamhosters.com, I see you set it up correctly, though DNS hasn't caught up yet. It's usually pretty fast, but it can be around 3-9 hours for the new name to resolve.
As for the rest, you kinda misunderstood me Don't worry, everything's weird when it's new. Then it all clicks in place.
What I mean in Step2 is this: By Having your temporary URL, yourdomain.dreamhosters.com, mirror yourdomain.com, you will be installing all your files into their final location of /home/user/yourdomain.com (and yes, that is where your files are, I'm looking at them). The reason you want to do that is so you don't have to move the file again later. It's all internal to DreamHost, so don't worry about where you get your files from, and just know that this is where you are going to put whatever you want on your website
It's mentioned under Setting it all up, this is where you just have to wait a bit for it to catch up
You're doing just fine, and you're doing everything right!