Originally posted by GeneV It depends on what you need. Most of the time, in body works fine for me, and it allows lenses to be smaller and lighter. It is one of the things I liked about Pentax. A DA*300 on a K3 is about the same size and weight as a high quality micro 4/3 lens of the same length and speed with in lens stabilization.
A big advantage to putting the stabilization in the lens is that you see the effect through the viewfinder. It is also said to be more effective at longer focal lengths.
The best of all worlds may be what Sony and Panasonic now do: allow you to use both, either separately or together.
Another advantage of InBody Image Stabilization is that all lenses are stabilized. When I left Canon three years ago, I unloaded all my lenses, many only a few years old, because none of them is stabilized; if I were ever to use Canon equipment again, I would want to start fresh .... everything stabilized. However, all my Pentax lenses are stabilized, even any that date before my birth {I'm 70 years old}.