it will install and remove packages until all dependencies are satisfied.
You seem to be missing the key point here. As explained before, the big difference between the regular upgrade and dist-upgrade/full upgrade is that the latter will remove
packages in addition to updating and installing. If, for example, there's a conflict that requires removing a library that kde, or gnome, or xorg, or whatever depends on, then say goodbye to your kde, gnome, or xorg (and everything that depends on them).
dist-upgrade is mostly there for the purpose of upgrading to a new distribution level, where the main idea is to configure the base system to the specified point. Higher-level user tools take a back seat to this. Yes, it can be also used within a single release and usually not be too much of a problem, because the base system won't change too much, but you do have to watch what it does very carefully, because it will sometimes attempt to remove things you don't want it to.