They need a pool of water in the tray at all times, so they never dry out. I keep mine saturated.
And so my ignorance of the product shows.
I have only planted directly into a soil mix, either in a 4”x4”x6” or a 5 gallon pot. Hence my predilection to let the medium dry out. But what you suggest makes perfect sense, especially for peat. This is a form of Swicking, isn’t it?
edited for clarity