The kitchen sink or bare bones?

As I build my armies, I tend to skimp on equipment. I will give squads the minimum amount of equipment that I think they will need, and never a bit more. Examples? My suicidal take one for the team imperial guard squads don't get squat. My Tactical space marine squads in rhinos get a melta. My Eldar Fire Dragons don't get an exarch. Why? I have always saved those points to buy another squad. I like to field as many units as I can, and this usually means I drop equipment to near baseline status.

Now I know from experience that many people are exactly the opposite. Every squad has the maximum amount of special/heavy weapon/upgrades that it can take. The idea being to make each squad the best they can be, no matter what might pop up. I have seen squads on the table that are paying almost 100% more for upgrades and wargear, and I often wonder if sometimes these extra points don't seriously put some armies at a disadvantage.

Now surely, there are pro's and con's to both of these situations. What do you guys think?