Think about WHERE the built-in Dictation processes your spoken text. The processing is NOT completed on your computer, but on an Apple remote server. That's why Dictation won't work unless you have an active internet connection. And it's a major difference with Dragon Dictate - which processes your voice within the software on your computer. If Dragon Dictate makes mistakes, you can correct the mistakes, and DD will learn, not making the same spelling or word selection mistake again. Dictation, on the other hand, does not learn when you correct mistakes. It will improve somewhat, as you use Dictation and the software adjusts to your voice - but would still make the same word selection, or spelling missteps. And - you get the same "30 seconds maximum, then press Done" before you see the words that you dictated.
You get what YOU want with Dragon Dictate, and you get to pay for that. Apple's Dictation is great for occasional use, but if you like to dictate more than occasionally, and you don't want the limitations of the built-in software, then you can move up to Dragon Dictate.