The value the tool read on my machine (0x50) seems to confirm the dithering is spatial. It may not contribute to eye strain.
What is interesting is that when I use the option --verbose while writing a value, the tool displays different values for "before" and "after", as if the value had been successfully written:
$ sudo intel_reg write --verbose 70030 0x00000040
Before:
(0x00070030): 0x00000050
After:
(0x00070030): 0x00000040
$ sudo intel_reg read 70030
(0x00070030): 0x00000050
Does the driver intervene and restore the default value immediately?
This seems to be the current source code for the tool: https://gitlab.freedesktop.org/drm/igt-gpu-tools
The code resides in tools/intel_reg.c. It seems the tool really reads and outputs the current value after a write (function write_register()).