What are the advantages of the XML2 file type versus the XML Embedded content file type?

Hi, I am setting up a new project and wonder which XML file type to use. I want to use the embedded content processors, and rather recently the XML2 file type was introduced. Any experiences with that file type? Which is better to use? (I will use XPath to parse because I will have to be pretty granular.)

Any reports are welcome!

Daniel