I think sleep effects are actually to be expected if you are meditating frequently. I was surprised by them too when I was really "going hard" a while back, but there have been a lot of threads about sleep-related things here. A common one is seeing through the eyelids, which, is essentially a Wake Induced Lucid Dream. I think it's because concentration becomes more commonplace, and it becomes natural to "pay attention" when we normally wouldn't. Actually, the things you're reporting here, if you're interested, you could probably go right into lucid dreams.
If you are having trouble with the DN, this could also be a symptom of increased concentration - little things that used to go away on their own become obsessions. Since you find yourself bouncing between DN (rumination) and equanimity, see what happens if you try using that concentration power to intentionally ignore the things that are causing problems. If this brings you into equanimity again, you'll see you have an "escape route" if things get too tough, and this'll give you the confidence to examine the emotions and find their cause. It can be tricky, but the DN can be resolved quickly once you work through the problems. It's helpful to think of it in a very conventional way - "I'm worried/mad/sad because of X." Once you identify X, you can simply ask yourself if X is worth being worried/mad/sad about. You might try to say "no" and the mind insists "yes" but these things can change pretty quickly if you spend a little time trying to understand them.
