By general rule, for small gradients it's usually better to just do the steps as-is, while for large gradients (as in large images) it's better to do both (e.g. do a gradient but use dithering between the steps).
The problem with dithering is that it was intended to make more colors on blurry crt.
PC CRTs were never blurry unless you count the very early CGA ones (which weren't really used aside from playing Sierra games because text mode was practically unreadable). The bluriness didn't come from the CRT, it came from using NTSC/PAL signals instead of raw RGB (it was a side effect of trying to merge and then later separate again the components with cheap hardware, with all the issues you'd expect from that).