I can understand both modes. I mostly use transcription as input for my AI assistant and there I find it very useful to be able to check my input and just repeat myself in case something wasn’t fully captured. When using Apple’s transcription feature built into iOS and macOS, I also really like being able to edit everything right while the dictation is still active.

Dream would be a combination of AI models that are smart like a human transcriber. One can just tell the model what mistakes it has made (e.g. "No, you wrote XYZ but I meant WXY"), and it is intelligent enough to realize when it is being instructed and when it needs to transcribe exactly what I say.