The thing which makes this ridiculous is that it now has little-to-nothing to do with actual writing skills or content. It's now on par with proofreading.
It's unrealistic to expect every quote everywhere to be clearly a thought, so you can use italics or a dialogue tag, he thought. If a publisher has a preference, they can tell you that in their guidelines or change it.
I think, if your story uses it extensively, italics seems less clunky than the tags.
If you're doing it poorly, it doesn't matter how you do it.
It's unrealistic to expect every quote everywhere to be clearly a thought, so you can use italics or a dialogue tag, he thought. If a publisher has a preference, they can tell you that in their guidelines or change it.
I think, if your story uses it extensively, italics seems less clunky than the tags.
If you're doing it poorly, it doesn't matter how you do it.