I don't have davits, but do see boats of our size with them. So far, I've taken the simple route of towing the dinghy. I bought a Garhauer cleat and bolted it to the stern rail. To minimize drag, I play with the tow length by getting the dinghy to ride the crest of the wake. I watch my SOG increase a couple tenths of a knot and find the sweet spot. Suspending it on davits gives you no drag, but so far towing has seemed to work fine. Some marinas will charge you the "total" length of your boat, which includes davits. So that's something to consider.
My marina has a dinghy rack. So when not in use, I store it there covered up with a silver tarp to shield it from the sun. I pull it out and launch it when I'm planning a cruise. Otherwise for day sailing, I don't need it and it stays put away in the rack.