I would go with the Yugo, I kind of like the scout scope look, and I have both my T53 and an SKS using that type of scoping. I do have a red dot to swap out with my LER scope...but I haven't really tried it.
I also think it looks more at home with how it is mounted on the Yugo with all the grenade stuff up front anyway. More balanced appearing?
The regular Type 56 would look better to me without the red dot at all.
Aesthetics then.
Actually not as much as you may think. I am one of few that does the scout scope at all around here AFAIK, but I have crummy vision...and am a right handed shooter/left eye dominant...and I wear bifocals. Generally, I wouldn't appreciate the look, nor do I particularly care for red dots on a wood stocked rifle. They don't help as much for my vision issues, and scopes look better. It's function and form. My SKS with the scout setup over the rear sight is full on bubba, but it also has different setups, for tinkering around. I only screw around with a few of them...the other dozen or so are as issued, or after I have unbubba'd them they are then as reissued.

I have a few red dots, and might even have a similar mount around here somewhere. My red dots are beyond cheap...I think the one that I have that is similar/identical to yours set me back about seven bucks new. Just because I don't particularly care for it doesn't mean I would pound it to death clamped to the barrel, or risk even shoddier marksmanship by creating barrel resonance by doing it that way. With my experience on the SKS platform and scout type optics, the handguard type, are a joke, the quad rail type are bulky and heavy, but one replacing the rear sight both looks better, is less likely to get beat up...and won't cause issues with accuracy.
Plus, with all the weight up front with the grenade trappings on the Yugo, if you put it up there it would look like some kind of weird blender attachment, that is unbalanced and front heavy.
I also like to be able to turn the thing off while I am still shouldering it...I forget often enough and kill batteries often when using these things.