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If dithering isn't stable in motion it creates distracting 'shimmering' and other effects as the camera or objects move, which can be unpleasant to look at.

Unstable dithering is also potentially harder to compress in videos.

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If this is surface stable it should also work for stereo/VR without much stereo disparity, where normal dithering would have a mismatch. And PCVR is often streamed over video codecs now so what you said aboutvideo compression should help there too.

I was also wondering how well it would look in stereo. My guess is it would still look strange (the "depth map" would also appear dithered) but the effect would be interesting to experiment with.

Yeah but if your dithering is noticable in the first place you're doing it wrong.

Unless you want it as an artistic style.

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