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Both have pros and cons.
But for the most part, a finished on site floor will appear more monolithic since it will be sanded sanded in place. Most all factory finished floors look like what they are, individual boards. But sanded in place floors will be flush from board to board ( at least initially ). Also, there are way more design opportunities with a finished in place floor. Much easier to do intricate designs, borders, mixed media, etc. with a finished in place floor than with a factory finished floor. So basically, the more intricate and complex a floor design is, the better to go with a sanded and finished in place floor. The cons? Usually more cost, more time, more mess, more experience required.
Factory finished floors fill the bill for simple, straight ahead designs. One can do borders and parquets but you are generally limited to what the manufacturer has thought of. Less choices in color and finish options. Very few are truly flush from board to board, especially in a solid format. Much more care in flattening the substrate must be taken as uneven substrates can telescope through to the surface. Factory finished floors can be less expensive and there are price points all over the place. Much less skill involved as the installer need not know anything about sanding or finishing.
In conclusion, it mostly depends on "the look" the customer is desiring. Very few factory finished floors come close to the "look" of a finished in place floor. But for many, a factory finished floor is ideal due to cost and convenience. Also, some factory finished floors are engineered and can be installed directly over concrete. Not many finished in place floors are able to do this unless one goes with an unfinished, engineered floor material, which are pricey, or install a wood subfloor which increases the cost. So budget, design, convenience, skill levels, time frames, substrates all factor into which flooring option is best for the individual
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