I agree with setting always visible as default, and I agree that three options are overkill. So how about this solution:
Rename dodge to auto-hide. I'm surprised this hasn't been mentioned before. Dodge achieves the same result as auto-hide, with the added advantage of faster access when no window gets in the way. It is strictly superior to plain auto-hide when measured with objective criteria (i.e. how quickly can you access a given launcher icon), and I really cannot think of any downsides. As an added bonus, it one-ups the relevant features in Windows and Mac OS X by behaving more intelligently (auto-hide when something gets in the way, instead of always). Just my 2cc.
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