We have seen more than once when you force the channel on it can say it channelling but it won't pass traffic if something is not configured right and this can cause spanning tree loops which doesn't happen when you use pagp . In another cisco doc it says to use pagp to aggregate the links so its whatever you feel comfortable . The added convergence time is minor. The only time this will make any difference will be if you have to reload the box. This is a specific cisco warning when using "on" mode as opposed to pagp or lacp to create the channels/
EtherChannel On Mode
EtherChannel on mode can be used to manually configure an EtherChannel. The on mode forces a port to join an EtherChannel without negotiations. The on mode can be useful if the remote device does not support PAgP or LACP. In the on mode, a usable EtherChannel exists only when the switches at both ends of the link are configured in the on mode.
Ports that are configured in the on mode in the same channel group must have compatible port characteristics, such as speed and duplex. Ports that are not compatible are suspended, even though they are configured in the on mode.
Caution You should use care when using the on mode. This is a manual configuration, and ports on both ends of the EtherChannel must have the same configuration. If the group is misconfigured, packet loss or spanning-tree loops can occur.