I think the example Buffett makes reflects the point of view of someone managing the company rather than the investor.

For two reasons:

1) If I am a smaller investor who is just starting, I cannot sell 3.2% of my shares each year. I most likely own anywhere between 100-10000 shares a company.

2) The scenario assumed the dividends are spent by the investor. But if I'm a smaller investor, I'm more likely to reinvest the dividends in another company and diversify. In that scenario I'm, as a small investor, much better off getting the dividend.