I used Mosaic Magic back in my high school journalism class to design a yearbook cover 20+ years ago! Turned out great - it won some kind of award iirc.
One really nice use case for dithering that I've found is for building graphics for 8-bit (Pico-8 and Picotron) games and toys.
I made a ruby script that can take a graphic and scale it to whatever size, then it uses a closest color match to substitute colors for the _very_ limited Pico* palette and applies dithering to make it look attractive. I like Stenberg the most, but have played with Atkinson and am still feeling around a bit.
Of all the IoT contraptions and ecosystems, I hate garage door openers the most. My opener came with some sort of goofy base unit where you can hit the "close door" button and it'll sound an alarm, trigger close, and then the happy little LED shows you that it is indeed, closed.
My solution, after looking into every off-the-shelf option, was to take an esp32 running esp32home + Home Assistant and hot wire it to buttons and status LEDs on a remote + base unit and stick it on the shelf in the garage. It's not pretty, but it works reliably.