Is it better to use cloth or disposable diapers?

Yes. You will find an almost equal number of experts that favor cloth as favor disposable diapers for being the best for baby's bottom. The same holds for earth conscious conservationist groups. So this really boils down to personal preference--as in the grocery store: paper or plastic?
No. Cloth diaper has its own advantages and disadvantages. Cloth diapers are good if it will be changed as soon as it is wet.