Since the Keen Awards have reminded me of my severe lack of keen-ness lately, I did this, a converter to allow TED5 (And ONLY TED5) to edit Keen Dreams levels.
While it does extract the levels from their compressed state,s small bugs mean I have included the pre-extracted levels in the zip. Editing a level is simple enough, run the batch file, fiddle around in TED and exit, the levels will be automatically converted.
The conversion does NOT support carmackized levels, so carmackizing in any way will give you gibberish. I could add support for it, but only if someone can help me, right now I'm disinclined.
There is one annoying issue however. Due to format differences, a new EGAHEAD.KDR must be written every time new graphics are imported. For this I have just drag-and-drop the imported header onto PATKDR.EXE to produce EGAHEAD.CK7, but I imagine this could be annoying when tweaking things. (Still, probably only as annoying as instantcarma)
The zip is here, with support for Dangerous Dave 3&4 thrown in: http://levellord.rewound.net/KDLEV.zip
If you have any problems, do post them here. I hope this is easy to use, but I'm amazed at how... obtuse some people can be.