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There's an arpeggio that I've heard in different songs and it usually signifies some kind of transition into a "dream world". Here's an example of it, which happens for the first few seconds of Great Fairy's Fountain. The arpeggio that's going on involves a C9 chord. Similarly in dance of the Sugar Plum Fairies there's a predominant B7 chord in their arpeggios, here's an analysis. Note that both songs have the word fairy in them.

I was wondering if it's safe to say that this sound is due to them using seventh and extended chords. And if I wanted to achieve this type of sound does it usually involve arpeggiating some type of seventh/extended chord, basically something more than just a triad?

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The question might be more subjective than objective - and so will be the answer:

It is more the arpeggio itself than the V79(13) chord that evokes this effect. It might be as well a whole tone scale or pentatonic scale for this.

In the music of Debussy you'll find many examples for this (flutes or harps): <

e.g. l'apr├Ęs midi d'un faune

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