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As to the advantages and disadvantages of the different densities, at its most basic level, the softer the pool cue tip, the more likely it is to mushroom or flatten out with each hit of the cue ball. What this means is that a soft tip will require more maintenance than a harder tip.
Soft tips seem to hold chalk better than hard tips, in general. A soft tip will give the cue a softer feel (less impact in grip hand) and have a different sound than a hard tip. Some people prefer some sounds and feels more than others. For more info, see cue hit, feel, and playability..