What is the currently correct way to dynamically update plots in Jupyter/iPython?

In the answers to how to dynamically update a plot in a loop in ipython notebook (within one cell), an example is given of how to dynamically update a plot inside a Jupyter notebook within a Python loop. However, this works by destroying and re-creating the plot on every iteration, and a comment in one of the threads notes that this situation can be improved by using the new-ish %matplotlib nbagg magic, which provides an interactive figure embedded in the notebook, rather than a static image.