Dithering give roughly 120dB dynamic range in 16bit audio, that is the mosquito 30dB above the noise floor. That isn't ideal, but I struggle find a situation where it matters. If the volume is low enough for the jackhammer to not damage your ears, you wouldn't be able to hear the mosquito anyway. One could argue that if we had the audio equipment it would be nice to represent the mosquito and the jackhammer without gain control, but with all the dynamic compression we have seen the last decade, I doubt it.
