This line in general has the effect of "helping create emotion" since it talks to the parts of the human mind that are more adept at this kind of writing, which is essential.
A. Complacent he is sure he is fine
The statement "the first clue that something had changed after Rip wakes up is that his dog wolf is licking his face" is False. In fact, when he woke up his dog, Wolf was nowhere to be found. Rip Van Winkle just noticed that his beard has grown foot long and his musket was rusty and rotting.
"deer in headlights" is an idiom.
"like deer in headlights" is a simile, the word "like" makes it a simile.