Some great comments above. There are definitely (dis)advantages with either setup.
One thing I'd add is if going electric you also need to think about the power supply - not an issue for many cruisers with 2 big batts & 24V - but the ability to pull with engine off that is often mentioned as a big advantage of an electric winch may only get you about 6' if you've got a really stuck truck with a big load & a small battery. Even with the engine going it is easy to go from just being stuck to being stuck with a dead battery if you haven't got the alternator & batteries to keep up with the nice big motors on many modern winches.
I really like my PTO but with the LJ7* (&KZJ) it is possible to do a very low profile custom install that isn't possible on other 7* due to the front crossmember location. The speed & power is really nice. I almost always have a co-driver who knows how to drive the truck & use the winch too.
On shear pins - I use a 4mm high tensile cap screw & nylok nut. I have never damaged anything in the PTO drivetrain with that setup. Mates have drilled theirs out & run bigger without issue but It'll pull pretty hard on 4mm. Carry spares & the tools to install them. With a bit of experience I can feel things loading up well before the shear pin breaks so I'll rarely pop one now. Run a higher gear/lower revs to get a better feel for the load on the winch.
For the love of god do not run wire rope on a Toyota PTO winch. It's mission in life is to loop off the side of the drum & cause a horrible snarl up at best or more likely destroy your freespool mechanism. I use 30m of 12mm UHMWPE rope - kinda overkill but the shear pin will ALWAYS break before the rope. The lower stretch helps with getting a feel for the load too I think. It's better to have a bit less length on the drum & carry a few extensions rather than fill it up. Another thing I did was move the outer fairlead rollers in a bit to make it less likely that the rope will feed off the side of the drum. Put big labels on the freespool lever positions, often when out in a group someone random will be helping out with a recovery who doesn't know how your PTO works.
Cheers
Clint