Late to reply to this post but I am firmly on team Dictation 
I also really like obsidian and working with markdown and wanted to have something that easily integrates dictation, typing and structuring a document in one flow.
Transcription options have made a huge leap in terms of speed and quality recently and the tool I’ve built uses Mistrals’ Voxtral as an EU/ GDPR friendly option. Not local although I have been experimenting with that but couldn’t yet replicate the same level of performance. Also given that I didn’t want it to only work for users with a high end GPU on a laptop or desktop. It’s more useful if you can use it anytime/ anywhere. If you want to check out my tool feel free - I would really appreciate any help testing and providing feedback!
You can find it here and install using BRAT: Voxtral Transcribe — dictate and type at the same time into your notes with voice commands (beta testers wanted!)
Kind regards,
Max