I think of dividends as bonus money. I also think that the growth is supposed to come from the growth of the companies you've bought into with the ETF. TFSA's are a long term thing, so comparing a TFSA that's just money vs one that's invested in ETF's is not really fair in the short term. Clever people have determined that stock market growth yields greater returns than money invested in a savings account, but in the long term.What puts me off is the small amount of dividends being paid out compared to interest that could have been earned.
I do both, with my emergency fund stashed away in Tyme bank (for that sweet 9% PA) and the rest in investments with EE (for now).