? Opinion/Thoughts - Dolly or Flatbed Trailer for Dinghy

As stated, you are limited to FWD toads only when using a dolly. You also have to cobble up a running, stop and turn signal light system. You are extremely limited in backing distance.
With a trailer, no limit on backing, built in lighting and braking systems, no wear and tear on the toad. Sets up higher so less chance of road debris damage. Definitely put a hitch on the toad for moving the trailer.

A dolly would be the only way to go IMO. Unless the trailer is small enough to move around by hand, it would be a bit too much of a hassle to mess with when stopped/parked/camping.

What about renting each to see which you prefer before you purchase one?

If the only use for a trailer wold be for the toad then get a dolly, IMO.
On the flipside, it is quite handy to be able to back up more than a few feet in a straight line, which is where the dolly is a hindrance.

Easier to move dolly around then a trailer.
Suggest putting light duty hitch on toad to move dolly.(or trailer if you go that way)

Tow dolly advantages: significantly less tongue weight (even though within the RV's capabilities, this can be still be relevant in many cases), less stuff to find space for at a campsite, nearly always no need to register the dolly, easier to manhandle around for storage, possibly lower initial cost.

Trailer advantages: you can haul other stuff if the need comes up, no wear and tear on the rear tires/bearings/etc. of the towed vehicle, fewer limitations on what other vehicles you could haul, backing up is possible (but not especially easy with a short trailer connected to a tow vehicle with a long rear overhang).

Personally, I suspect I would end up opting for the dolly, but I'd certainly give both options a good bit of thought first.