As a furniture maker for 35 years, if the people poo-pooing that repair knew how many woodworkers use toothpicks, matchsticks, or shavings with or without glue to fix a stripped hole, they'd faint.
Crap, I've seen this repair in 1800's antiques still holding well.
Drilling for a dowel is great with the right tools. The problem is the average "carpenter" typically might only have basic fractional bits or the bit may wiggle with a handheld drill. Most store bought dowels are undersized or otherwise far from precisely sized. To do it as accurately and perfectly as many picture would require either an oversized dowel turned down to match the hole or a good set of number drills to fit the hole to the available dowel.
Dowels typically used in joinery are fluted to best fit a hole and allow excess glue to escape. The inside of the strap button hole is already rough, as it was once threaded with a larger screw. once the toothpick or matchstick is compressed into the existing rough areas, the screw will bite into the tighter hole. The glue is just insurance if the screw is ever removed again.