The object model is better, since you can access additional functions and complete granularity of list items, such as version history.
The object model is also better for performance (if you properly manage () spsite and spweb objects).
The Sharepoint object model has some differences between 2 and 3, but if you look at the link for v2, it will also work fully with v3.
Web services have not changed at all between v2 and v3, which explains why they do not have new v3 features.
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