I think you need to analyze the disaster scenarios and recovery costs you are trying to balance before you can really evaluate these different options.
If you are on reasonable storage, I think it is arguable that the main reason you would have to recover is due to a software failure leading to corruption of the PostgreSQL backing state files. Otherwise, you would simply be restarting PostgreSQL on your durable and available storage. So, if the content has been corrupted by bugs, can you trust the recent WAL log in this scenario? Or can a plain dump be a more reliable "known-good" database recovery point?
And what is the business cost to rolling back to a less frequent dump such as nightly? Not every DB is some kind of multi-party OLTP ledger. Sometimes, a day of lost "new data" may be just a day of labor to repeat some data entry or other repeatable work...
A really robust contingency plan probably has both of these kinds of backup, and scenarios where one recovery versus the other is attempted. But if you are starting at a very small scale, hosted on some reasonable cloud storage like EBS, a cron-based dump that goes into a normal hierarchical file backup system may be totally sufficient for the extreme disaster scenario where you cannot simply restart your DB server on top of the surviving and available storage volume?