Higher quality is better of course, but it may not be much better. If your camera uses varying degrees of JPEG compression to define image quality, take a few test shots at each available setting and note the differences. Then select the lowest resolution that produces a good image. If you can't tell one one image from another, you'll welcome the increased storage capacity at lower settings. You'll need this if you want to send images to someone.
Some cameras offer internal fixed storage only.
Although simpler than a removable storage media device, it means you can't stray far from your computer. If you plan to travel with your camera, make sure it accepts some form of plug-in storage device. Otherwise you'll need to pack your laptop too.