DNS or DHCP which is better

Pi-hole's primary domain is DNS. Its DHCP server option only exists to help owners of very restricted routers that do not allow to alter DNS settings the way they want to.

You may incur a minor one-time additional effort in order to show the desired hostnames for client devices in your network if your Pi-hole is DNS only.

You won't lose anything with regards to Pi-hole's DNS filtering.