I love a target type hold for irons on rifles and pistols. I really don’t like covering the target with my sights. However, I’ve never bothered to try with a dot, because the size of the dot in relation to brightness and lighting conditions changes so much I don’t think you could have a consistent zero.
That might be different with a dot with a chevron or crosshair type reticle, but I haven’t ever owned or shot one of those