i think the external is a lot better.
first, there is less turbulence in the dp from the gate dumping into the stream. this is considering if you go open dump. if you do reroute the dump back into the exhaust, you can do it further down which would still help w/ the turbulence.
second, external gates are much larger than internal ones. this allows more flow, control boost, and lack of boost creep. of course this will need to be matched to your turbo. no need for a 60mm hks gt gate for a 57mm turbo. conversely, you wouldnt want a 38mm gate on a gt42. assuming it is matched correctly, the benefits apply.
downside. cost and fabrication to some degree depending on if you go open dump or reroute. noise- if you go open dump it can be a downside as well if that would be a problem.
do you need an external gate? it really depends on the setup. but its hard to make a blanket statement of internal is all you need. given the choice, id always go external.