I currently have punchy. I like him he's cute, but his house is in the worst possible area. I also love Stiches, he is one of my favorite villagers and was also in my first city folk town. I'd go with Stiches over Punchy any day though.
I've seen Stitches in a neighbour's town before and it was so pleasant and funn, his room was so nicely themed for him! I haven't had either one, Punchy or Stiches, I think you could try Punchy I never seem him around very often in other people's world/town xD
I have both and honestly, it's whichever you prefer, teddy bears or kitties. I have them both and would be hard pressed to choose between them. However, Stitches has an incredible sense of whimsy about him. He is this tiny stuffed and patched living teddy bear that stumps around town. I do think everyone should experience him at least once.