That’s simply not true. Because of the way that LEDs work, they will appear at different brightnesses at the same voltage level. However, the differences between different LEDs brightness is significantly less at higher voltages. This means always using a higher voltage, but then keeping the display on for less time, allows full color accuracy while also allowing display dimming. If you use DC dimming, you will always lose color accuracy unless you have separate power lines for red, blue, and green LED sub-pixels, accounting for the brightness differences for each LED type. This might be possible in a large device such as a TV (though extremely expensive and would take a massive amount of engineering to make work), but that’s simply not possible in a phone. Additionally, a capacitive touch screen makes separate power lines significantly more likely to have interference. So engineers did what engineers always do, they made a design that hit the spec, a dimmable display with color accuracy that looks identical to the vast majority of the population.Its not essential for anything it is a cost saving measure mobile devices implemented without any regard towards users.
For example OLED tvs and monitors use DC dimming with no compromises.