Magento

Is there any way to do this with Vanilla magento? I know I can create a configurable product with simple products “Product A - Option1, Product A - Option2 etc”. Is it more beneficial to create simple products for colors and sizes? Maybe from a reporting standpoint?

I found this http://www.mageworx.com/advanced-product-options-magento-extension.html Would there be any drawbacks from using an extension like this?