Ofc blind people can dream!
The main part of dreams is usually the emotional component, or thoughts etc, the preceptions of senses like visual or sound is kind of secondary to the meaning or experience being felt in the dream state. Some blind people may see some things in dream from memory if they were once sighted, or from their residual sight, since most 'blind' people are legally blind but have some vision, just not enough to function as sighted, or partially sighted. They can often see light, some shape, colours, and can sometimes even read with very powerful magnification devices, etc, so how much they might 'see' in their dream may depend on what they see when awake. Not that many legally blind people see absolutely nothing... and if they do see nothing at all, then they don't know the difference between black and white unless they once could see, so how would they know which one it was? Makes you wonder eh?
I can sometimes 'hear' things I remember when I dream, things from when I was little. So I guess that's the same sort of thing as for the blind. I have some friends with albinism, and PWA (people with albinism) often have poor vision, many are legally blind, but they do still percieve some things with their vision, and it's just normal to them. So they could see in their dreams they way they do in life, whereas I hear in dreams sometimes how I used to, sometimes how I do now.