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...if I enable adsense for an ad unit, it will serve adsense ads based on some criteria (which I can't figure out), almost like a default kind of thing.
What are the pros and cons of one versus the other?
I noticed that when we started using DFP our ad impression's went up even doubled.
By selecting Copy Adsense targeting and selecting a channel, you can copy AdSense channel information to your placement and continue to generate revenue from AdWords campaigns that are targeting your site.
Copying AdSense targeting settings will not affect your channels in your AdSense account. However, please note that any channels that you copy will appear twice in your AdSense reports.