Going with lower voltage is less efficient as the LED will output less light per voltage but not linearly, it will still use most of the power of full brightness at half.
Choosing PWM allows you to skip this problem by keeping the voltage identical but by using human persistence of vision to get the ideal number of photons to your eyes per your perception frame. The problem comes from making a slow PWM signal, say 60Hz, or having two similar but not identical PWM signals near each other, such as two different TV screens with a different backlight PWM frequency. That can make you see flashing because of the out of phase brightness peaks and troughs lining up.