How to say this without coming off as an .........
Dielectric grease is an electric insulator. Not the ideal substance for an electric switch.
For something like a Nemesis-clone switch, some TLC with sandpaper on any sharp-ish/hard edges will accomplish more than any lube, without affecting conductivity. Damn... think I just did the ...... thing again...
Also not trying to sound too asshatty...
Many of the crunchy switch issues are a loose tolerance machining problem.
Polishing the sliding/moving surfaces may help but if the switch is just plain too loose in the bore, it is kind of a lost cause.
Machining a closer tolerance pin or knurling the bore may help but is probably out of reach for someone without access to machine tools.