Record&Playback versus creating scripts manually: What is better?

I wouldn't recommend using strictly record/playback, for the reasons you've already noted.  Scripting or keyword tests are much more precise. 



You can certainly mix keyword tests and scripts as needed, if that suits your needs.  At the moment we are using mostly keyword tests, with some code and scripts mixed in where they are useful.  



We use recording occasionally to help find object properties, but not as an integral part of a test.