Yes, there is much in the poem that is praiseworhty and beautiful. In fact, certain sections will even move you to tears.
However, that doesn't change the fact that there is blatant shirk in all three categories of tahweed in that poem: shrik in ruboobiyyah, uloohiyyah and asma wa sifaat.
Therefore, the poem should not and cannot be read except to correct these exceses.
As for the alleged story of how the poem was written, the Prophet (saw) would not appear to anyone and praise him had he written soemthing of shirk. It is only the mystics who base their religion on dreams and fairy-tales; as for the true Muslm, he has the Quran and authentic Sunnah as his only true guides.
BTW, just so no one things I haven't read the poem or am passing judgments w/o any knoweldge:
An example of shirk in ruboobiyyah is the stanza:
"And of your generosity is the (creation) of the Wolrd and its co-wife (meaning the Hereafter)..." Here it is as if the World and the Hereafter was created from the generosity of the Prophet (SAW).
An example of Shirk in Asma wa sifaat:
"And part of your knowledge is the knowlege of the Tablet and the Pen..." So PART of the knowledge of the Prophet (SAW) is the knoewledge that is encompassed in the LAwh al-Mahufdh - the tablet that has EVERYTHING written on it!! and that is only 'part' of his knowledge!! Compare this mystic poem with the authentic hadeeth in Bukhari where a young girl said "And we have a prophet who knows what will happen tommorrow.' to which the Prophet (SAW) said, "Leave this (bit), and say the rest of it."
Example of shirk in uloohiyyah:
" And who else there, besides you, who I can call out, at times of distress and problems?" Umm... how about our Creator, the only one the Prophet (SAW) HIMSELF would turn to at times of distress??
The poem is a prime example of over-praising the Prophet (SAW) and putting him ina place where even he himself would not like. We will discuss it more in Aqeedah 101 insha Allah.