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I first heard it because it was the name of my grandmother (who died before my birth). I liked it as a kid, and I like it now - although, more as an artifact than as a name for a baby, because so many people understandably word-associate it with mildew and dread.
I think it'd be fine to use, in reality. People just would not love it. Do we care, when we really like a name? Not really.
Dreda would be okay - beats Millie! - but I'd rather it pronounced DREE-da, not "dread-uh."
Which makes me think Mildred could be converted to Mildrieda, like Elfrieda.
I've long thought it could be converted to Mildreth or Mildrith. And Millicent to Mellisant. I mean, if we can have Alyvia, and Zooey, and Madelyn and Aubrie and Amberleigh and Starlet ... and Avalon, and Greenleigh and Everleigh ... why not Mildrieda and Mellisant? Ketruda, even (Gertrude)? Berenica (Bernice)? Maybe it's just that people who like these types of names in the first place, are also too snobby to alter names to seem more aesthetically pleasing in the present? I dunno.
Anyway yeah I think Mildred is lovely, but it's way out of style.

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- mirfak