I think that the benefit depends on the individual and how they train. In my case, it makes a massive difference in overall training effectiveness (all my workouts in general, not just zeroing-in on a single workout).
I have to do almost all my training indoors, and it is mind-numbing. So, I prefer to watch streaming shows while doing the workout. This is very difficult with trainers in resistance mode, and I generally under perform my targets. With ERG, that is a non-factor. I simply ride the ride and the trainer does the rest. If I am fatigued, I can easily dial-back the effort level. But what I probably miss is dialing-up the level on the days when I am feeling stronger.
But the key is that I am doing 16 workouts a months for months on end. While a handful of my workouts may be suboptimized, overall they are far more effective with ERG because I am doing them better than I would be without.
On the other hand, for athletes who like to focus on the trainer app without distractions and adjust targets on the go, then resistance mode might be more effective.
This exactly mirrors my opinion and experience. Since I do hours and hours of indoor training, I enjoy being freed up from the effort of trying to hit a power target and being able to just watch TV or listen to music and let my mind wander.
I’ll also add that I have zero problems adjusting to outdoor riding or racing. And really, I don’t use power that much in racing. I still mostly go by feel. During races, I have my average and normalized lap power on my headunit. I monitor it to make sure I’m holding a steady effort, not charging hills, or going out too fast in the first half of the race. But I’m not trying to hold some power target with any kind of real precision, like to within a few watts. In the end, my averages are pretty close to what you’d expect given my training numbers, course conditions, etc.
Bottom line-- I see no harm from ERG mode and it makes indoor training much more enjoyable, so why not keep taking advantage of it.