Generally, larger amounts of mash/sparge water and depending on how man times you sparge means a higher degree of efficiency but sometimes thats not always the case. Ill explain through one of my experiences.
When I first started AG I would use the standard 1.5 qt per lb ratio and go from there. So for example in a recipe calling for 11 lbs of grain I would mash with about 4 gallons of water. Accomodating for the water lost to the grain, about a gallon(this is a guess), that means I would collect 3 gallons of wort and so I would sparge with 3 gallons of water to get a total of 6 gallons of wort. Doing this method I routinely came up with low to high 60% efficiency.
After a couple of brews now I have changed my ways. For the same amount of grain (which is the amount of grain I used for my pale ale just a couple days ago) I didnt really follow any particular method but I guess it would closer to the big P's method. I mashed with 2.5 gallons of water, which I guess is pretty close to the 1 qt per gallon idea, and then sparged twice with 2.5 gallons. The result was a 6.5 gal collection at 83% eff.
To get to your orginal question. Pros of using large amounts of water with more then 1 sparge is a higher effciency (generally). The cons, in the begginning you may do a miss calc and find youve gotten way more wort then necessary and spend the rest of the day/night boiling it down to the wanted volume (been there done that got the t shirt). the following link may be helpful. Cheers
Image:Batch sparging grain weight.gif - Home Brewing Wiki