This discussion of which is best takes into consideration skin and health concerns, cost, the environment, and convenience.
"You'll change thousands of diapers by the time your child is 2 to 3 years old and ready for the potty. Fortunately, diaper quality is better than ever, which makes the task easier. Your first major decision in the diaper department will be between the cloth or disposable kind (see our report on cloth diapers). Both kinds have their benefits and drawbacks. On the one hand, disposable diapers are undeniably convenient, but they're also costly: You can expect to spend $1,500 to $2,000 or more on disposables by the time your baby is out of them."