When I started I bought the Youngs/Wherry brewing kit that came with a pressure barrel, but before my first brew was even finished in the FV I had decided bottling was going to work better for me. Principal reasons are the longer shelf life, I can give a few beers away when I want to, I can have more (different) brews bottled without the need to store LOADS of barrels but the primary reason is that I drink less when it is bottled. If my beer was in a barrel I would feel the pressure to get it supped quicker and that is something I don't need any encouragement to do!!
I also really enjoy the bottling process and they look great when all of the bottles are sitting there ready to go. The downsides to bottling are that it takes a bit longer than kegging and the initial cost of getting started with bottling is a bit more for a capper, bottles, wand/little bottler, bottling bucket, but it really isn't that bad if you plan to do a few brews and you can always scrounge the bottles.
I would now only keg for a party or similar event.