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You don't need to awaken during REM - it's effective, but not at all necessary. Keeping a dream journal is usually all it takes.
It is true that the brain tends to erase dream memories, but obviously that doesn't always happen. We can train our brains to actually remember the dreams. Writing down something about them can help you remember them later. Sometimes I'm just going through my day, and I see something (like someone on a bike) and I suddenly remember an entire dream. Also, I think that once you wake up, and write down the dream, you've put it in your regular memory - so it won't be easily forgotten. I don't look over my dream journal and not remember any of the dreams I wrote down - actually, I remember all of them.
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