An overflow is needed when someone has a sump under the tank. A sump is a place to put many tank things, like heaters and special filters called "wet/dry's". If you don't plan on running one (which you wont have to if you use a canister or HOB filter) then the overflow will be unused..
pro's- tank looks *cleaner*- less things cluttering it. Increases tank volume. pretty much necessary for saltwater tanks.
con's- I cant think of any. Its more expensive (sometimes), and wet/dry filters can be loud.