I believe dignity is necessary and a basic human right. There are so many instances of people having their dignity stripped of them, particularly in my opinion when it comes to health care.
To me, the word is very hard to explain, but I know when I see the lack of it imposed on other people, because it gives me grievous pangs in my heart. That's the best I can do at expressing my feelings on it.
"Someone's dignity is not ours to destroy or to gift. It is, in any case, an overrated commodity." This sounds a lot like the 'sticks and stones' philosophy. 'Dignity comes from within and no one can take it from you', blah blah. That seems at best unenlightened and at worse callous and immature. I think the way you respond to what life throws at you can be dignified, in that sense we can have 'innate' dignity, but I believe that dignity is a tacit agreement we have with each other as civilized people. There are boundaries we know we shouldn't cross; indignities we should not impose on each other. Wow, I just used the word 'indignity'. See how hard it is to define the word, when to try to express its opposite, you fumble around and come up with the same word. Maybe it's so hard to define because it seems so fundamental to us. It's like trying to define life, or spirit, or mind.