Liquid yeast is more expensive, has a much shorter shelf life, and requires more tightly controlled storage conditions than dried yeast. Some liquid yeasts may not have an adequate cell count for pitching a 5 gallon batch, but making a starter a few days in advance can overcome that problem. Those are the only disadvantages to liquid yeast that I am aware of.
I have heard (and I believe that it is true) that the stresses imposed in drying a dried yeast causes that yeast to behave rather differently than the original when it is rehydrated.
I do know that using a viable liquid yeast, or yeast cultured from a naturally conditioned beer has consistently produced better tasting brews for me than dried yeasts.
I have had a few liquid yeasts that were not viable, and would not ferment, but my HBS refunded me my money on them.
I always use liquid or cultured yeasts by choice, but I keep a few packets of dried yeasts for emergencies.
Hope this helps
-a.