Not only can the degree of diffusion be controlled by various means, but the final edge effect when the mask is combined with the original for printing.
But overwhelmingly, that "first camp" option you mention, with no lens involved, makes no sense at all; and I've never personally encountered that in past literature - perhaps that's some recent DIY tweak. With no adjustable aperture in place, how can one fine tune anything? And with a lens instead, it does not necessarily mean using just the smallest f-stop.
And instead of a fixed out piece of film between the original and masking film, the almost universal practice is to have a diffusion sheet of thin translucent mylar (frosted both sides) in between. I like to use 5-mil, because still thinner 3 mil gets crinkle marks easier. And don't substitute frosted acetate. (No need for a white sheet atop the contact frame in that case, although there is nothing wrong with experimenting with one.)
Newton ring risk is a secondary issue, which can be addressed in several ways.
Practice was somewhat different when a big transparent vacuum blanket was involved, pulling things together, rather than using a registered contact frame. That was in relation to very large film sizes in the graphics trade.
Masking for color printing gets a little more involved, because one wants to be attentive of the color temp of the exposing light in relation to the specific spectral sensitivity of the masking film itself. Then if there's a color neg original (versus a chrome), one also has to null out the effect of the orange mask.