We\'re currently using subversion on a relatively large codebase. Each release gets its own branch, and fixes are performed against the trunk and migrated into release branc
The major difference, as far as I know, is something you've already stated: named branched are in a single repository. Named branches have everything handy in one place. Separate repos are smaller and easy to move around. The reason there are two schools of thought on this is that there's no clear winner. Whichever side's arguments make the most sense to you is probably the one you should go with, because it's likely their environment is most similar to yours.