Imagine what kind of computers could you make if you could radiate heat into more than one dimension. Or maybe you would get greedy and use up all available dimensions for interconnects and use one remaining dimension for heat dissipation anyway.
Also note that even using 3 dimensions to traverse a 1-dimensional space doesn't mean there's guaranteed to be no distance between two points. A string can be super densely coiled in 3D space where there's basically no 3-dimensional distance between two points on the string, but it can also be stretched out or loosely crumpled and still have lots of 3d space between two points on the string.
The time dimension is entirely separate. You always travel a distance in the time dimensions, in space the distance just exists, there is no concept of traveling without time. This is also visible in the math of SR - the time dimension is different from the three spatial dimensions (opposite sign in the distance metric).