In regards to FCH with or without dot. 1/8th moa sounds small and precise. It is. But simple fine cross hairs are even smaller and potentially more precise. Fine cross hairs in a 6.5-20x Nikon Monarch for instance only cover 1/20 th moa at 20x.
Now on some particular targets, a good target dot will sit just inside the smallest part of the bulls eye or aiming square. The eye finds it very easy to naturally center circles within circles. It simply wants to do this without even trying on your part. This makes it easier for some or require less concentraion I suppose to center up the target dot on the target aiming point.
One fly in the ointment is most dots are not shaped as a perfect circular dot. Even in expensive scopes they tend to be egg or tear-dropped shaped just a bit.
My personal opinion is I like the simplicity of plain fine cross hairs. I believe most benchrest shooters and silhouette shooters prefer target dots. I have used both to reach this conclusion. I must say just looking through them I thought I would prefer the dot. But after a few shooting sessions with each I came to prefer the simple crosshairs.
But really you have to be getting very serious in target shooting before your results are much effected by which reticle you are using. Mil-dots or regular duplex aren't costing you much in accuracy.