Pasted the good stuff below:
There is a misconception that 8bit with FRC may generate unacceptable artifacts for professional video monitors. Modern day FRC algorithms provide very accurate color reproduction and will actually produce significantly less artifacts when viewing a 10 bit video signal than an 8 bit panel without FRC, which will show some degree of banding and exponentially fewer colors. Native 10 bit panels are of course the best solution, but the price premium is quite significant for a very marginal improvement in performance. 8 bit + FRC is becoming the new norm in many high-end consumer and professional displays. The difference between 8 bit monitors with advanced FRC and native 10 bit monitors is so negligible that many manufacturers now simply refer to both technologies as 10 bit. – Flanders Scientific
Furthermore Greg Staten commented, over on the Lift Gamma Gain Forum, that
You can make 8+2 FRC panels that look extremely good and there are both spatial (within frame) and temporal (between frame) dithering that can be used. The Z24x is an 8+2 FRC display and looks quite good. The main limitation of FRC comes when looking at subtle shading across a narrow tonal range and the most common place where artifacts can be seen is in skies, mostly manifesting itself in a grain-like pattern that is an artifact of the dithering.
The Z27x is a true 10-bit panel and provides an additional 2 bits of FRC (so you could call it a 10+2 FRC display, but I typically just refer to it as 10-bit). In this case the dithering is used not so much to add additional tones to the image, but to reduce the higher internal bit precision to that the panel can accept. Proper spatial dithering typically produces better results than truncation. (Incidentally, the Z27x, while capable of both temporal and spatial dithering, ships with temporal dithering disabled. This was done based on feedback from animation/vfx houses that beta tested the display. If desired, though, temporal dithering can be turned back on using the monitor’s API.)