The reason God didn't simply dictate His word is because that wasn't the best way to communicate to you His truth, and His will for your life. Look at the books of the Bible. You'll find 66 books by 40 writers, each relaying their individual views and perspectives on specific topics and events. If God simply set a man down and told him what to write, you'd miss out on that man's unique perspective, and how he viewed the events and happenings through his own eyes. This technique adds credibility to God's word, because it's not just God telling someone what to say. If you can find many different men and women in the Bible who lived at different times, were eyewitness of certain events, and then see them all agree (even though they may each have their personal perspective), then you've given the reader a more reliable basis on which to believe. It's kind of like a bank robbery where there are 10 different witnesses as opposed to one. Would you have more confidence in getting at the truth if all 10 of the witnesses agreed on what happened and gave you the same story as you interviewed them seperately, or would you say that, because you have one witness that can dictate to you what happened that you feel more comfortable? God tells his story through people, and because of that, He needs to let them speak - not be puppets.
God has indeed given "dictation" though. Consider the Ten Commandments. They were dictated to Moses. If dictation is important to you, etch them onto your heart.
With regard to all the heart burn over the King James translation - does the lifestyle or personal beliefs and behavior of James really matter with regard to the KJV of the Bible? That's like saying we shouldn't read or take seriously any book of antiquity until we research and evaluate the lifestyles of those that wrote them. Should we dismiss Homer and his works because he happened to enjoy red wine as opposed to white? Should we dismiss the writers of the Constitution because some of them may have been given to drinking too much, or to smoking cigars? How does ones lifestyle necessarily negate the work he or she does on a particular thing? Besides, the KJV of the Bible is a translation that was done by others, not James. He didn't write it, but merely commissioned it. Let's not get too crazy here by implying that he had more to do with the translation than he did.