Look what a "professional" says about it (Drakenza, maker of the last unlocking software, iDemocracy3, on his wiki faq). I think that he is very honest:
How does this tool (honestly) compare to ZiPhone, iLiberty+, and Pwnage?
We'd like to say that's it's better than all of them, but unfortunately that's not so quite yet. iDemocracy is a work-in-progress, continually updated to add more functionality. At present, Pwnage is still leading the iPhone hacking game, but we're not far behind.
Compared to ZiPhone
We can't think of a reason you'd prefer ZiPhone over iDemocracy, because they're both modeled off the same concept. ZiPhone is preferred by some who like it simple (just one command-line command and it's all over). However, people looking for more features (like Media Manager, Backups, etc) will prefer iD3.
Compared to iLiberty+
iLiberty+ has the payloads system, which is a big plus. Compared to 3.0, it's more feature rich in that aspect. However, iD3 still has the Media, File management, and Backups. People interested only in the hacking aspect will lean towards iLiberty+.
However, this should all change after the release of Catalyst and iDemocracy 3.1, so stay tuned!
Compared to Pwnage
Pwnage is obviously the safest jailbreak option available, and the most advanced. And due to its closed-source nature at this time, we have little hope of catching up to the Dev Team. However, iDemocracy is a quicker option for those who don't want a full restore.
Of course, Pwnage supports some builds of 2.0 and has more jailbreaking features. The release of Catalyst should help narrow the gap between iDemocracy and Pwnage.
The original text:
faq [DemocracyWiki]
(sorry for my siouxglish) ;-)