I own a Huawei P20 Pro, which has an AMOLED display, and also a Native Always on function. However, I'm not satisfied with the system's Always on feature, so I downloaded an app from the Playstore that provides a much better interface. My question is now, if that is somehow harmful for the phone, if I do this via an external app.
The display is not very interested in which program it is addressed. The control still regulates the electronics.
Nothing is destroyed.
I suspect you will save more power with the AoD from Huawei. It will be in a kind of stand-by mode while running normally on the external app. So the background processes are all going on happily and consuming more power.
With an (AM) OLED display, the burn-in of pixels is not so rare and an AoD accelerates it. Therefore, the content should move on the AoD so that the load of the pixels migrates. Be it that it is displayed at the top, in the middle and at the bottom, or that it rotates for one pixel at a time (top → right → bottom → left etc.).
Since I do not know both, I can't make a judgment about it.