Depending on the level, I think there is room for all teaching methods

Yep, and I think it would be a mistake to leave out the occasional ting1xie3; especially if you want to get some concentration going. Of course in addition they will have a record of what's been dictated for future reference. So the ting1xie3 would obviate the need for some handouts. Dictation can be made interesting. And I do like them handed in to be marked. In fact I like to walk around the class while I'm dictating and see how they're doing.