|
As far as I can tell the main reason for the two methods is to handle two different kinds of products: physical products and virtual products.
Physical products should be created as configurable products as each option will have a unique SKU. This maps to the real world as your stock of Product X in red will be different to your stock of Product X in blue. In other words, each is really a distinct product that needs to be tracked separately but it’s more convenient for the customer if they view it as a just Product X and have options for red or blue.
Virtual products should be created as simple products with custom options as each option doesn’t need a SKU. Obviously you have no “stock” of virtual products (unless you handle licenses or something) so it doesn’t really matter if someone chooses a red or blue version of Product Y as there’s essentially an infinite number available of both.
Of course, I’m sure there are plenty of exceptions to this “rule of thumb” but I think it should give you a better idea of why both options are available.
|