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dither is not masking, and todays dacs are more than 16 bit linear

maybe you haven't noticed but "24 bit" DACs are the norm today, and some are close to -110 dB thd+noise

but lots of source is 16 bit redbook CD audio ,which is where dither helps

dithering is valuable and can help Redbook CD deliver better than 96 dB weighted thd+noise despite the 16 bit words

"masking" seems to be misleading in this context, correlated quantization error is seen as harmonic and IM distortion products; dither removes the signal correlation and the the harmonic and imd products

eliminating correlation is not simply masking which implies the continued presence of the masked signal along with the additive masking signal

this is a consequence of quntiztion being a nonlinear process - added dither doesn't simply "add" to the output

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