Old thread, I know, but wanted to pile on as I have done a bit of work with LEDs, starting back in perhaps 2000 when they came out for the bigrigs, spanning up to a 'special project' just last year.
Yes, LEDs will typically not dim much via a rheostat, you need a PWM dimmer (pulse width modulation). This essentially cycles the voltage on/off/on at a high frequency, enough to alter the light but too fast for human eyes to detect. there are a bunch of them available on Amazon for cheap, but some of the sizes are not friendly.
As mentioned, LED choices vary a lot, and because an LED is directional, special attention must be paid to which direction the light must throw in the IP, sometimes a multi-chip LED bulb is mandatory. BAsed on my experience, you can buy a lot of LEDs until you get a particular combination to work well. Also, if using for warning lights, the LED must match the lens otherwise the color is altered. While it is obvious to not put a blue LED behind a red lens, what is not so obvious is to *not* but a white LED behind a red lens, as this will give a 'bright' coloration that doesn't look quite right.
The 67-68 dash lights were done back in 2003. This project was tougher than one would think (factory lights are actually front-lighting the gauges from the upper dash), although modern strip lighting would make it much easier. If I were to do it again the results would be better (and cheaper).
The 300 lights started out as an experiment and I investigated a variety of COB chips, daisy-chained modules and strip lighting. It was a very complex balance of putting LEDs directly behind the lens fluting (to prevent hotspots), finding modules to fit the fluting (which is not consistent across the lens), finding modules to fit in the housing (which tapers shorter toward the side of the car). The lighting is a bit more impressive in person vs what the camera shows - not specifically brightness, but in how full it appears behind the lens, and how 'commanding' it is. I believe I have a good recipe for finishing the project, however it took way too much time to develop and fell low on the priority list. 80 watts of LED chips for backing lights have passed proof of concept also. One day I may get it done...