some more info -- sorry for the very long post
I'll also assume you are talking about RCI Weeks and RCI Points in your OP, since that is what most Newbies are looking at when they start. You already got some great input, so I'll take a stab at some more, and will cover some of the 'technical and exchange' aspects.
Covering all the advantages and disadvantages of each one is complicated as pointed out, since they can also be influenced by when and where you want to exchange into, what you are exchanging with, how important cost is, how much time you want to put into exchanging and other personal factors. Small and subtle differences in any of these factors, might cause what one would perceive as an advantage, to be a disadvantage; or vice versa. An Aside: So that's why many say a lot of homework is needed to buy the right property, develop an exchange strategy, plan where you want to go, and so on -- especially if you are just starting out. As you start to get familiar with things you'll eventually need to decide on what you want to achieve, the best way to get there, and maybe even consider other options like rentals or possibly one of the hotel timeshare chains.
An Observation: One person might recommend one ownership over the other, because the properties that they own have an advantage in one system vs the other, or because they own a week that gets a lot of exchange "horse-power" for relatively low maintenance fees, and they are able to make the exchanges for where they specifically want to go. Yet another might have a totally different perspective; since the higher maintenance fee for their property is not of concern (travel is top priority), or they want to primarily stay at the same resort for a lot of weekend getaways, and they really aren't interested in exchanging into higher-end or unique properties anyway. So I'm convinced that one size will not fit all when it comes to exchange systems; and that's great for us TUGgers, since we can each take timesharing to whatever end we desire. [We personally use RCI TPU, points, rentals and even internal resort exchanges for our vacation needs.] I also believe you would have to understand the needs, preferences, ownership, etc. of someone asking for a recommendation on what system is best for them!
Now having given you the caveats, here are some things that will help you get started. I like to think of them as trade-offs or considerations, rather than as advantages and disadvantages. (After all, both systems are nothing more than a way to achieve a means anyway.) But beware, since RCI controls the rules and terms/conditions for exchanging, they could change at any time:
1. Membership Fees: Annual fees for a weeks account are less than a points account. So if you only own weeks properties, the cost to open and renew will be less. In addition, RCI has periodically offered deeply discounted fees for weeks account renewals, and I don't recall them ever doing that for points account renewals. (Both will give you a discounted renewal % if you extend your membership for multiple years, but the weeks renewal fee ends up costing less, because the annual membership fee is less to begin with.)
Although a points membership account costs your more than a weeks account, if you own a weeks property and a points property, you can get a free weeks account anyway. You just need to call RCI and ask for Web Services to get the account in this case; and just be sure you open the points account before you establish the weeks account.)
2. Exchange Fees: A weeks exchange fee is slightly higher than a points exchange fee. So this might be a consideration if you eventually will make a lot of 1BR exchanges for all of your 2BR lockouts, or take a lot of timeshare vacations.
3. Exchange Units: TPUs from from a deposit, are not automatically combined with other TPUs you may have in your account, at the time you want to set up an automatic search or even make an exchange. So that means, you will have to pay a combine fee to set up an automatic search or to book a unit, for a higher TPU exchange.
Although you might need to combine TPU, there is nice an advantage in doing it. When you combine TPUs you also extend their life for an additional 2 years, from the time you combine. So it's theoretically possible to carry TPUs forever, from any given year -- as long as you periodically combine them with others from time to time. However, you will also want to have a strategy for combining TPUs, since combine fees are currently $99 each time you do it. (Points can be rolled from this year to the next year for free, but will cost you to extend them into the 3rd year. Unfortunately they can't be extended beyond that, so they have a finite life before you loose them.)
RCI Points from one timeshare automatically combine with RCI points from other points that are already in your account, since they all have the same use year. So there are no combine fees with points.
You can do what is call a Points for Deposit (PFD) if you already have an RCI Points account. However, a PFD cannot be done with a unit from an RCI Points resort. RCI currently charges $26 per PFD, and points are mixed with any other points you have in your account at the time, once RCI verifies you can make the deposit with your resort (can take up to 3 weeks or so).
4. Vacation Window: A weeks exchange can only be made for a 7-day window. So you cannot exchange for less than a week, and if you want more than 1 week, it will have to be done in additional 1 week increments (which will also result in additional week exchange fees). Hint: If you want to stay an extra day or two at a resort, call them and see if you can rent these days. Some have an internal rental program just for this, and the $$$ cost can vary, especially if you own there.
RCI points exchanges give you the opportunity to exchange for less than 7 days (for a reduced exchange fee), and even longer for only one exchange fee. But be aware, not all resorts will allow you to exchange for less than a week, and/or they may charge a cleaning fee if they do.
5. Renting, Transfers and Borrowing: There are no provisions for buying (renting) week TPUs, should you find yourself a little short for an exchange. In addition, there are no provisions for transferring TPUs to other members, and you cannot borrow TPUs from a future deposit, without first making the deposit and having the resort confirm it.
You can "rent" RCI points directly from RCI, should you find yourself running a bit short for an exchange. The price is a fairly high, but it might be an option if you don't need many points. Most will not recommend renting a lot of points, because it can be very expensive. A better option in this case, might be to get them from another member. Although there is no fee for doing a point transfer, there are rules and an intended purpose for this, that need to be followed.
You can also borrow points from your next year's RCI point deposit, should you find yourself running short in the current year. There is no fee for doing this, and it can be useful when planning special, important, difficult or more costly exchanges.
6. Exchange Inventory: You might find that the exchange inventory or required exchange values, are better in one system or the other. This can be the result of several factors, some of which include: owners deposits, owners making PFD deposits, whether the resort has sold RCI Points conversions (is an RCI Points Resort), the specific resort agreement with RCI, whether the resort uses RCI to rent units for owners, whether the resort bulk banks deposits, demand, travel seasons, etc.
Although you will be able to see and exchange into some weeks properties from your RCI Points account [using points], you will not see all the possible weeks inventory that may be available for exchange at that time. You will also need an RCI weeks account to see other exchanges being offered from Weeks owners -- because it can be different inventory. However, some RCI points members have been able to see them in their RCI Weeks account, and have had success calling RCI to get them to exchange that inventory using their RCI points. [Although some RCI vacation counselors have refused to do this, it is worth a call if you are a points member and have taken advantage of your free account. The key here is to be able to see them; and without a weeks account you don't know what you can't see.]
Making specific exchanges into certain areas or resorts can be a whole separate topic in and of itself. The Sightings, Exchanging and Regional Sections of the forum have a lot of posts for specific topics, so that's a good place to start. Don't be afraid to make a post asking for the best ways to get there.
7. TPU and Points: TPUs you receive for a week deposit will vary with supply and demand at the time you make your deposit. In addition, the TPUs required to make a week exchange will also vary with supply and demand at the time you make the exchange. Subsequently, values tend to fluctuate over time due to other owners making deposits and competing for exchanges, and it is not unusual to see a noticeable differences from year to year. In general, the further out you deposit the more assurance you have of getting the highest TPU for your deposit, and the the best chance you have for getting the exchange that you really want. A Note: The TPU Calculator in the weeks account is a good tool to use, to get a feel for TPU deposits and exchanges, but you must have a unit on deposit to gain access to it. [Unless you can talk an RCI Website Specialist into adding a 'dummy deposit' into your empty weeks account.]
Weeks that get deposited less than 276 days ahead of the timeshare-week start, loose some TPU value the closer it gets to the start. In general, the value drops below 100% at <276 days, all the way down to 45% if deposited <14 days ahead of time.
Points given for a deposit or required for an exchange, are based on a grid that is periodically published by RCI. (Although the grids haven't changed much over the past several years; the seasonal supply/demand, quality rating, feedback scores, and other factors might cause changes in future years.) The grid generally reflects averaged seasonal values of supply/demand, with peaks for any highly traveled or valued periods. This means that you typically know how many points you will receive on your account anniversary date, and don't need to make any arrangements to make actual deposits with RCI ahead of time.
PFD values are also based on the conversion grid, and they will also begin to loose value if the PFD is done within 90 days of the timeshare-week start.
8.Float And Conversion: A floating-week at a weeks resort usually requires extra steps with the resort, to make a deposit. Oftentimes, the resort will pick the week you will get to deposit, based on available inventory, owner banking, and specifics from your deed/contract with the resort. At the better resorts you can request what to deposit, in order to maximize the TPU you receive from the deposit. So, in some ways having a floating week when making a week deposit can be good or bad, depending on your ownership and when the week is selected. I would start with the resort first, to see how they handle floating weeks, assignment priority, etc. when they select a week for deposit.
Converting a weeks property to a points property is expensive; anywhere from ~$700 to >$3000, depending on the resort, timeshare and size of the unit itself. (Since you can find resale units already converted to points on eBay or from other TUG members, most will not recommend you pay for converting a unit today.) With a converted unit you will already know who many points you get on the anniversary date (as previously described), and won't care what underlying week actually got deposited.
9. Exchanging Priority: Some resorts allow you to deposit your week up to 24 months in advance of the timeshare-week start. So you are able to deposit it at that time and can start to exchange with the TPUs once it is confirmed by the resort. This allow you to start watching for other exchanges at the home resort or resort group that you may be interested in. However, you are also competing with other exchanges at this time.
Some resorts have provisions where weeks owners are given booking or exchange priority within their resort, resort group and affiliated resorts. But this too can become a topic in and of itself, so you'd want to search the forum for more information.
Points owners get priority booking for their owner week, home resort and resort group at 13 to 12, 12 to 11 and 11 to 10 months, respectively. Priority booking within your resort using RCI Points can be a good way to get into your resort if you can't travel during your owned week.
10. Searching: Searching in a weeks account is much more user friendly when compared to a points account. [In many ways the flexibility to book stays of various lengths in a points account, limits the way you can search the account.] You can also initiate on-going searches in a weeks account, but can't in a points account, once you have made your deposit and paid the exchange fee.
You can save any real-time searches in a weeks and points account, so you can use it later. However, I also find that saved searches are much easier to understand and use on the weeks account; especially since you can only search in a 30 day window in a points account.