I used cloth. I preferred it because in the VERY early days, as a BFing FTM, I was worried about how much milk she was getting, and in cloth it was very easy to tell how much she was peeing. Then once the explosive poops began, I was definitely going to stick with cloth, because it held the poop in really well and we never got the horror stories I had heard of poop up to the neck, etc. Although I could see how that would be possible in a disposable diaper without the strong waist and leg elastic that cloth has!
From a purely financial standpoint, I don't think newborn cloth saves much money, especially if you buy new or get mostly fitteds or AIOs. But there are good deals out there and if you can pick up a gently used NB stash for cheap, or if finances are not a big constraint, I think it is totally worth it to use cloth on a newborn!
I still have my whole stash of 30 GMD newborn prefolds (had 36 but 6 became wipies/burp rags and then swiffer mop heads) and a Bummis and Thirsties covers and hope to use them on future babies