if you have linear filtering it will always introduce some semi transparency at the edges even if the texture only has absolute transparency, this is what the cutout solves, this is a technique used in basically every 3D engine to allow (absolute) transparency in the (cheaper) opaque pass, for example for foliage.
Dithered transparency is also still used in todays console generation, if you look at switch 2 games, for example Duskbloods. Common case for dithered opacity is also switching LODs, so models in the opaque pass can have a less harsh transition to their lower LOD.