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Cycling Villagers

In terms of what exactly? There are reasons for both options it all depends on what you want? If you're a cycler or you're cycling out villagers to get a specific villager back then obviously the 2nd option. If you're just playing the game normally and you have all your dreamies then obviously you would choose the 1st option.
 
so if you never change villagers, obviously you won't get new ones. but if you never change them, nothing will happen?

If you're at the max, so 10 villagers in your town, than there is no way to get a new vilager until a current villager in your town leaves. You can still have villagers in your campsite but you can't ask them to move in.
 
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