As for the baby, cloth diapers are generally easier on baby's tender new skin and there isn't likely to be any allergic skin reactions like can arise with disposable diapers. It is a more natural cloth against their skin, however there is not the same protection afforded with disposables and their dryness barriers they advertise. But the lack of dryness in cloth diapers can mean easier potty training later on. Your baby will grow into a child who won't like that wet feeling and want to learn to be a big kid that much sooner. While your baby is little, the cloth diapers will need to be changed more frequently since they don't absorb like disposables, so time becomes a factor again.
Environmental concerns are undebatable really.
Disposable diapers accumulate in landfills and take up precious space on our ever-increasingly populated planet. So if caring for the earth is your first importance, then cloth diapers are definitely the best option. And using both cloth and disposable diapers is always an option as well. You might consider cloth during the daytime and disposable at night and when traveling, to get the benefits of both. Whatever you decide on the best diaper for your baby, feeling comfortable with your decision is the easiest way to handle any flack friends or family give you for doing what they think is wrong.