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This is one of those questions where everybody just has to go with their own personal preferences. My last choice would be trying to dictate. I tried Dragon Diction as well, but as you have already...
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#3: Attribution notice added
Source: https://writers.stackexchange.com/a/4201 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#2: Initial revision
This is one of those questions where everybody just has to go with their own personal preferences. My last choice would be trying to dictate. I tried Dragon Diction as well, but as you have already noticed, the pauses and the less than stellar word conversion rate make it too tedious. I have done almost all of my writing by hand and then transferred to Word once I was ready to start editing and working on the second draft. I have tried to write my original work on the computer, but I find myself losing track way too often. I feel that by writing everything out by hand it allows my thought processes to work at a more natural pace. For those who are into left-brain, right-brain comparisons, I read that handwriting is on the side of your brain that is more creative, while typing is on the side that is more functional. I don't know how true that is, but it certainly seems to work out that way for me. Another advantage of doing my initial draft by hand is that when I get ready to start typing it, I tend to have a more critical eye on what is written down on the page. I am usually more focused on trying to read my handwriting, so I end up finding a lot more mistakes than I normally would by just reading the typed out version. Ultimately, though, it really depends on what works for you as the writer.