PS1 dithering: part of the charm of the console's graphics (like the warping textures and unstable polygons) or just an eye-sore used to cheat their way into having "more color"?

I play on original hardware so I'm used to it and have come to like it. The PS2 renders it slightly incorrectly which ruins certain effects and makes some games that heavily use the dithering, like Silent Hill, very ugly as a result.
On emulator you can simply increase the color depth of the system so that the dithering is both eliminated and you actually get the colors the dithering is trying to trick you into seeing, but this sometimes results in bad color banding.

Thoughts?