Having done both, there are pros/cons to each:
ALL INCLUSIVE
As Tracey mentioned, it helps determine a set cost to your trip. Paying in advance for flight, room, meals and drinks takes the unknown cost factor out of the equation, except for tips, souvenirs and island activities, but you can make a set budget for that.
A good AI experience is also dependent upon the resort at which you stay. Some resorts have more choices than others. Also, Aruba is not like other destinations where you shouldn't leave your resort.
Feeding kids is another AI consideration. Holiday Inn comped us AI about 6-7 years ago. I would not choose AI at the Holiday Inn, as they have limited dining choices, but it was GREAT for breakfast and the KIDS. They could eat whenever they wanted throughout the day from the beach bar. I don’t know about other resorts that provide AI plans, but at Hol Inn, there were many things on various menus that were an upcharge. It was ok for drinking, although we still preferred taking our cooler. If I remember correctly, we didn’t like the beer choices in the AI plan. I found I didn’t care for waiting for my drinks and I don’t like well liquors (boy, that sounds bad). I guess I just like making my own.
We had the AI plan on our honeymoon in Dec 1989 at the Americana (now Barcelo). It was good for:
-first timers
-did not rent a car
-non-foodies
-drank a lotttttt more than we do now
-and back then, there was no mall and restaurants across the street
-I’ve compared some AI plans to what we spent and AI was more expensive
TRADITIONAL/NON ALL INCLUSIVE
The abundance of great restaurants within a short walk or drive is one of the best reasons to not go AI. I would hate to miss out on our favorites, some of which have things we only get in Aruba.
We stay up late/sleep in and often miss the designated breakfast times when we are on vacation. I often get up “early” and make it to a beach chair just to fall back asleep. By the time DH joins me, it’s lunchtime for most others.
We like certain beer and some AI programs don’t offer what we want, so I would suggest that those wanting to purchase AI check that out ahead of time.
When it comes to cost, you can also set a budget for dining. Albeit, it’s a little more difficult, but with the internet you can definitely research the cost of meals.
Most of our trips are no longer AI because
-we like visiting our favorite restaurants
-with having a car, you see different parts of the island going to said “favorites”
-we take our own drinks to the beach to be able to have our preferences
-We have saved money not going AI