The diffrence between installing a mod chip and soft modding the xbox

I have softmoded my xbox, but what is the diffrence between installing a mod chip and softmodding it?

 

Chips store the "hacked bios" on the chip. With a softmod, it is a bootable from media bios(BFM bios).
Chip give you more ways out if you screw something up or there is a hardware failure. All the "OMG My C drive is gone" threads would be fixed with chips. Right now if your HD failed, you would be screwed w/o a chip. And for the longest time until Krayzie released NDURE, you couln't dual boot and be safe on live, which you have always been able to do with a chip. And Hard drives are as easy to upgrade as putting it in and pressing A.