I used both at different times. My son was a preemie, so it was preemie disposables... no choice here. Then I started using regular disposables, but he was getting terrible diaper rashes to the point where the pediatrician's nurse was giving me nasty looks. He actually had chemical burns! What turned out to be the situation here was that there was some sort of allergic reaction due to a chemical reaction between his urine and the scent they put in the diapers. Why do diapers need to be perfurmed? Even when I found some that weren't perfumed, he always had more rashes with disposables than cloth. I think that's because they don't breathe. Of course, economy size bottles of A-D ointment can help avoid the rashes too.
So, it was on to cloth diapers. This is a real art. If you don't get the folds, pins (well, velcro now I guess) and waterproof pants on just right, then you may as well just leave 'em off altogether.
Another point I want to bring up is laundry. Get a service. There's not a lot that's less pleasant than dealing with a load of dirty diapers that have been sitting for a couple of days. Remember tho that even with the services, you have to take the dirty ones into the bathroom to deposit the load. Even with a service, make sure you have a couple dozen or more of your own, just in case and for other uses.
A big plus. Every child I know of that had cloth diapers was toilet trained months to years earlier than their paper diaper pals. Let's face it, in cloth, you feel it. It's wet, it feels cold pretty quickly and that's just the wet half of things. So, yeah, they've got a little more incentive to put those things behind them. If nothing else, when toilet training time rolls around get some old fashioned training pants and give 'em back a little bit of that incentive.
A big minus. A lot of childcare providers (if you use one) won't deal with cloth. Sometimes this even includes family who doesn't want wet spots on their couch or carpet.
They both have their advantages and disadvantages. You need to weigh them out for yourself... your schedule, money, convenience, hygiene, odor, diaper rashes, toilet training, etc. There's no reason that you can't use both also.... use the cloth when you're staying home and disposables when you're going out. Think about it and come up with what's likely to work for you, it's not like you can't change your mind or as I mentioned use both as the situation calls for it.
Good luck and congrats!