It's a coherent description but I think it's inaccurate. The sum of the
lift vectors is now simply tilted from the vertical aircraft will
simply turn.

I agree that dihedral will have a stabilizing effect but it's not
because more of the wing low wing is parallel to the earth. It's
because the a/c slips towards the inside of the turn (controls being
neutral). The slip gives the low wing a higher angle of attack, thus
more lift and it will tend to right itself.

Conversely, a wing with dihedral will tend to bank if the aircraft is
yawed with the rudder. Left rudder, right skid, right wing has higher a
of a in relation to relative wind and the aircraft banks left.

Fold a hersey bar sized piece of paper to simulate such a wing. Then
slip and skid it and imagine the a of a on each panel.

Morgans wrote:
"Dallas"

Why would a horizontal wing create "more effective lift" than a banked

wing?

Let's think of a set of wings with a dihedral angle of 10 degrees up from
horizontal, on both wings.

Now, think of the shadow the wings would make, if the sun were straight
overhead, while the plane is banked at 10 degrees. The wing that is up
would make a smaller shadow than if the plane were flying level. The wing
that is down would be making the largest shadow that is possible.

The size of the shadow is the only size that is important, because the lift
that is straight up (towards the sun, in our example) is the only lift that
will be important to the plane, as that is what is counteracting the force
of gravity. The fact that the down wing's shadow is larger, will make have
more effective area than the up wing, and will tend to bring that wing back
up.

While you are in level flight, the same thing will constantly be at work,
automatically trying to keep the plane level.