one thing is true. It's better to have a blog that brings in 1000 targeted visitors a day than a website to have 100 visitors a day on the same niche & keywords. & Vice Versa It's all about the traffic - that's why i can create a one page landing page on blogspot that makes more money than a 100 page professionally designed website Whatever you decide to start - both convert and both are proven methods of earning $xx,xxx a year. Blogs are more user friendly, update easier, so I recommend beginners using those. If you're a huge business - or even a small business; you may want to consider using both.
Blog is better than websites - in particular if you have to code your html. It's easier to monetize and update.
Use both of them. a website for the most important things that you want the visitors to know about the niche, then a blog for updates and news.
I use both. I prefer static sites as I have more control over it, but blogs are ok for satellite sites.
I'll go with website. There's a lot of different things you can do with a website. A blog is easy. Easy to setup, easy to post. No scripting needed. You can do other things too. It's not all mutually exclusive. I make more money on hand scripted html pages then my blogs. I make surfer traps(not popups/spyware/malware/virii/etc), I guide users through as much advertising as I can before they hit the content(I can't go nuts, enough for them to follow). Going outside the box and doing something different can get you past the smart browsing user that mentally filters out ads.
Blog have more content can be added.. Some people say 'content is king'.. That mean you can have better ranking on search engine..