What are the applications for dithering these days? I understand it was needed when we had 4 or 16 or 256 color limits. But now we have 8-bit/channel displays, and 10-bit is becoming popular.
Dithering is vital. Just like dithering is vital for audio, even at 24 bits.
Also keep in mind that the "10 bit" you speak of is implemented by dithering on an 8 bit panel in almost every display. Similarly many cheaper 8 bit displays are actually 6 bit with dithering. Additionally, 10 bit is a very rare output format [1] and rarely used by applications apart from the handful of HDR games; even for content creation applications 10 bit support is uncommon, and it actually being utilized even less common.
[1] Just because everything is output and composited in 8 bit, doesn't mean 10 bit display output is entirely for naught. If you are using hardware gamma correction, which you are when you use tools like flux/redshift/... or most ICC display profiles, then 10 bit scanout of an 8 bit framebuffer still makes sense.