Hi,
The question really seems to be whether or not your data requires controlling. If the data requires a controlled or restrictive environment; then you would want to stick with the combo box. The pros of the combo box is that it also reduces errors. The blessing of this, is, if by chance you ever need to export data via a comma delimited type format (for example) a simple error such as an extra space could throw everything off.
By your question, I have no clue how specific the data is that you are dealing with or how specific you need to be with the management of that data.
On the other hand, allowing users to enter data is great when you do not need to restrict the inflow of data.
Form users (such as myself, usually don't like being forced to make a choice, when they're choice is non-existent within the available options). The pros of allowing user entry resolves this issue for users.
Which brings me to the point ...

As a developer, I would believe that your first priority would be to insure proper and effective data management (1st decision), then of 'course to make your form as user-friendly as possible (2nd decision).
By making the first decision it may answer your question, if not, I apologize if I've wasted your time.
Also, "a ray of light" ... it's been awhile since I used this feature, but I really do believe (if memory serves) that you can actually set up a drop-down box that also allows/accepts new entries (and that would automatically add them to the drop-down menu list). It sounds as if this may be the way to go with you.
I guess I'm a little unclear as to what arena you are trying to apply the description "better" to, i.e., "better" for the developer, the user, data management/processing? Do you see my point? That's why I think you need to analyze your motives first, then make your decision, methods, tips, and tricks follow after that.
Good Luck,
Angelica Alcala
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