How can you mask a square image into an image with round corners?
Both the methods work but the differences shows up depending on where you use it.
For Ex: If you have a table view with the cells showing an image along with other labels, etc., and you use layer to set the cornerRadius, the scrolling will take a big hit. It gets jerky.
I faced this issue when I was using Layer for an image in a table view cell and was trying to figure out the cause of that jerkiness only to find that CALayer was the culprit.
Used the first solution of doing the stuff in drawRect explained by NilObject. That works like a charm with scrolling being smooth as silk.
On the other hand, if you want to use this in static views like popover view, etc., layer is the easiest way to do it.
As I said, both the methods work well just that you need to decide based on where you want to use it.