I would argue that it adds a new failure point, and a catastrophic one at that.

Yes, many hunans don’t monitor their oil properly. I’ve seen some destroy engines because they thought the low oil light could be ignored for a week.

Even if you still had the dipstick, owners would become reliant on the sensor and grenade the engine when it gets it wrong. Remember how Teslas had hoods that flew open while driving? The problem wasn’t the latch. The problem was owners relying on a crappy sensor.