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The main issue is whether Google gives more priority to text links over alt. Again my site is doing fine with the alt links, even though in the past people have said alt is not as good.
The main pros for my image navigation is that it looks good and gives originality to my site. The main con is that they will take longer to load than a text link. But for me at the moment the aesthetics outweigh the slightly longer load time.
As for alt v text for Google, I personally have no reason to get rid of my alt images in favour of links. Having said that I have vertical text navigation down the left hand side which link only to my second level pages.
I suppose it is good practice to provide both forms of links on your pages, but I find no amazing advantages which one has over the other.
That's my view anyway.
Also, although Google does see alt tags and uses them as part of the keyword density check (in my opinion) I don't believe it attributes them to the linked-to page in the same it does anchor text.