Filtered data extensions are recommended for use because they allow you to subset your data using populated fields available in Marketing Cloud (see Data Dictionary).
Auto-suppressions for special handling and opt-ins/opt-outs are applied and updated automatically.
Data extensions can be saved for later use within 30 days. They are easier to refresh with the most current data because all you have to do is click on the refresh icon.
CADS ID lists are more useful when you need to subset your data using criteria that aren't possible using fields already available in Marketing Cloud and need to be constructed outside of the tool. It is also better to use CADS ID lists when you have a specific customized list of CADS IDs you want to send a communication to.
These lists are more likely to be used if you need them only for one-time use and are maintaining your own opt-in/opt-out constituent preference records.
If you are not experienced with using Marketing Cloud data fields and are not confident with subsetting the data using AND/OR operator logic, you might be more inclined to use CADS ID lists that are generated via CADSmart reports or by UDAR AIS.