Dynamic blocks excel at content that changes independently of user input and allow instant markup updates across all instances by modifying the PHP render function, similar to classic theme development patterns.
Four main disadvantages limit dynamic blocks: poor portability (only placeholders export), dual maintenance of JavaScript and PHP views, limited inner blocks functionality, and performance overhead from PHP function calls.
The JavaScript-PHP split requires keeping editor previews and frontend output synchronized manually. Inner blocks work but lose many benefits, and performance impacts multiply with numerous dynamic blocks per page.