flac is a lossless format. If it started as 24 bit wav, nothing is lost when you get the flac version of that. it's just smaller.
More importantly, the problem isn't trying to hear 96dB of range all at once. The baseline is fixed in place, so when you have a quiet section all those high bits are 0 and you need the low bits to have enough detail by themselves. And a whisper is pretty far from the quietest thing you might have in a track.
If you can hear the dithering noise, then I'm pretty sure there are sounds you're hearing that would be wrong or missing without the dither.
7Digital is one of those money-losing companies that keeps being passed from owner to owner.
7digital is chock full of spam. Spotify, for all their faults, has some people who care about quality on those sort of things (the old Echo Nest people). 7digital and their white-label frontends don't, they're skeleton crew operations.
I hope they understand, they can't run Bandcamp like that. Bandcamp has had problems like this in the past, with people spamming the services with other people's music and pretending to be them. It happened to an old classmate of mine who's a reasonably well known Jazz musician. Someone pretended to be her on Bandcamp for years.
If this roll-up company plans to run Bandcamp like 7digital, there will be a ton more of stuff like that.
The 7digital acquisition is still pretty fresh, so your experience with them was the state of things prior to the acquisition. Also moving forward, remember that this was already the state of things on Bandcamp, lest people forget and think that the impersonations started after this acquisition.
Songtradr's core business has been B2B sync licensing. One of the reasons "Trust" is such a big deal on the website is that very large brands can't risk having a debacle where it looks like they've stolen music. So we do a lot of vetting of information before music is made available to our B2B partners.
Rest assured that if things slide in a direction, it'll be towards more vetting, not less.