Act as a senior React developer with 5+ years of experience in optimizing performance. Explain how to use the `useCallback` hook in React to [MEMOIZE FUNCTIONS] and prevent unnecessary re-renders in [FUNCTIONAL COMPONENTS]. Provide a step-by-step example demonstrating its use in a [REAL-WORLD SCENARIO], such as a dynamic form with input validation. Highlight common pitfalls, like missing dependencies in the dependency array, and best practices for when to use `useCallback` versus other optimization techniques. Use clear, concise code snippets and explain the performance impact of each decision.