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Now, which method is better?

Separate

Well looks pretty straightforward.

Multisite Network

From Before You Create A Network, it has the following features,

  • Can do different domains, subdomains or paths
  • This is confusing but the message is that WordPress refers to domains and sub-domains the same thing, sub-domains. "A sub-domain install creates a domain-based network, even though you might use separate domains, and not subdomains, for your sites."
  • You can have separate databases or use the same with different table names
  • There is only on instance of WordPress to maintain

Cons,

Conclusion

Will go with separate self contained installs as the performance gain is negligible. Wordpress upgrades are straightforward so the maintenance gains are also negligible.

References

Determine if this actually increases security - http://www.suphp.org/Home.html. It seems to make the most sense for shared hosting.

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