As someone who was very low on Dillon in his first few years with us, yes he has gotten much better since.
He is a really good complimentary partner to his D partner. He can honestly play on the top pair as long as the RD is a stud, as he seems to elevate his game based on his partner, and I do not mean he just mooches off them, but actually plays better himself while also benefiting from his partner.
Not sure who Carlson's partner is, or how entrenched that pair is, but if its not set in stone, WSH might honestly want to look at using Dillon there. Not saying he will for sure work with Carlson, but based on Dillon's play with guys like Karlsson and Burns, its worth a look.