Another thing to consider in defining "better"--will end users be querying this data directly? Highly normalized data is difficult for end-users to work with. Of course this can be overcome with views but it's still something to think about as you're finalizing your design.
I do agree with the other two folks who answered: which form is "better" is subjective and dependent on what you're hoping to achieve. If you're hoping to achieve very quick queries that's one thing. If you're hoping to achieve high programmer productivity--that's a different goal again and possibly conflicts with quick queries.
