Which is better to sync, wifi or iCloud?

I heard that you shouldn't sync with itunes and icloud.  Which is better, and how do you set that up?

Where did you hear you shouldn't use these?
You're comparing apples and oranges. Wifi sync is a way to wirelessly sync with iTunes on your Mac or PC. This includes content that you've purchased, content that you've ripped from your own CD collection, as well as things like playlists, song ratings, etc. This is just to replace plugging in your USB cable as you've always had to do in the past.
iCloud is a way to store some of your content on Apple's servers and retrieve it on any iCloud enabled device. Note this includes only content you've purchased (music, movies, tv shows) or content you've created using iCloud-enabled apps like Pages, Numbers, or Keynote. iCloud doesn't let you sync "metadata" such as playlists, song ratings, etc. if you add a song to a playlist on your iPhone, it won't show up on that same playlist on your iPad, Mac, or PC because you use iCloud. It only gets moved on those other devices after you sync. iCloud also provides a means to keep calendars, contacts, notes, and reminders the same across multiple devices. Finally, iCloud let's you backup your device to the cloud instead of to your Mac or PC, which is handy feature as you don't have to worry about losing your backup should your Mac or PC fail.
You can choose to use iCloud and not wifi sync, or use wifi sync and not iCloud, or use both or use neither. They are independent of one another and provide different functions.
Personally, I use both. I wirelessly sync so my iDevices are up to date, and I take advantage of iCloud for my backups, calendar, contacts, etc.

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