Rolf is homesick, and the Eds come up with a plan to make him believe he's in his home country. Rolf's homesickness was so severe that it takes a while for him to recognize that the village is makeshift.
After her travels over the rainbow and beyond, Dorothy wakes up at home and acclimates to her surroundings. The moral of the story--that there's no place like home--is a feeling common in all of us.