Lucid Dreaming is still quite good with stitched, its just the cards you are removing change. I aim to remove 3-5 face cards and then attempt to match that in low cards (such that I'm not discarding the high cards due to Vivid nightmares). All things considered, despite the LD cards ending up back in your deck, they're not in your deck for THAT turn and does help mitigate some low flips.
Here's where the magic happens. Stitched are able to, once per ACTIVATION (so even during opponents activations), cheat with one of the removed cards. Typically I use this to secure the hit with a gamble or if I have focused and win the duel naturally, to cheat severe damage. Also, do not underestimate the ability to cheat cards from the lucid pile during your opponents turn when they try to remove key stitched. Sometimes you are forced to remove a moderate card while using LD, these can be useful to limit pressure on your hand and win duels (if your opponent is out of cards, or force negative flips). Between df, armor1, and the ability to cheat from the LD pile, you can make a 6ss model very difficult to remove. On top of this, when they do die, they drop a scrap. Widow can summon stitched off of scrap markers, and as such you can continue to recycle stitched, even after they die, making them very frustrating to stop. Stitched often end up being my tanks and prime damage dealers while insidious are off scheming.
An average stitched activation is often just a LD, focused gamble your life, refocus for next turn. Sometimes I'll charge with the second ap if I really want to tie something up. Often times you can set up combos where you deal 5 dmg with gamble, place an alp you have buried for 1 dmg, make a 'made to kill' attack (ideally with a plus flip from a buried daydream) for min1 and reliably do 7 dmg to a model. Said model is now tied up with an alp who can still activate and is giving out an aura of -flips. It's quite debilitating vs some crews.