I agree with this, and that's how my bike is set up. Solid dyno and flashing battery. I have experienced the disorienting effect of blinking lights myself. I usually find the blinking pattern that never fully goes dark, if a light has one.

I have seen people riding without lights only because of their pedal reflectors, but those disappear very easily. I'm not sure I would count on a wheel light being noticed from behind, but it can't hurt in combination with other lights.