It's easier to rehydrate more yeast than it is to make a starter, but is it bad for the yeast health to make a starter with dry yeast?
Noone's mentioned the real reason not to make starters with dry yeast, which is all to do with aeration.
Without going into too much detail :
Let's say in a typical brew you start with 1/2oz of yeast and end up with 8oz. They've grown 16x in weight, which if all other things are equal means they've doubled 4 times, and need another 16x the stuff that makes a yeast.
Some of the stufff that makes a yeast can be sucked up direct from the wort and used, but the yeast also has to make quite a lot of it from other ingredients.
One of the limiting factors is the availability of sterols, which help make up the cell membrane and which need oxygen for their creation. That's the main reason for oxygenating wort, to enable yeast to make sterols to make cell membrane, which is a key part of cell division and building up yeast mass.
The dry yeast people grow their yeast in a particular way so that they have big reserves of sterols, enough to see them through about 3 cycles of cell division. Which will get them most of the way through a fermentation, even if the wort is not aerated. Whereas the typical liquid yeast or yeast from a starter has no reserves of sterols, so needs aeration just to get enough sterol to start growing.
That's the big difference - if you use dry yeast you don't have to worry too much about aeration, whereas if you make a starter (from dry or liquid yeast) then aeration becomes much more important.
The repitching thing is also somewhat important - the stress of the drying process seems to induce a higher mutation rate in that generation, so you end up getting more petite mutants etc. Plus some dry strains seem to be blends (intentionally or not), so the blend ends up drifting with repitching.