Upsides -- Easy to buy more power without really changing the pre tone you like.
If you have the power you need but don't like the tone you can shuffle pre's until you find something you like.
Ability to chain more cabs together than most people would care to haul around.
Downsides can be -- Size, weight, and sometimes overall cost of the whole system although good power can be had for relatively cheap nowdays. 20 years ago or so I considered about $1 per watt to be sort of a fair price for good reliable power, you can get it for much less now. Peavey for one is making 1 rackspace poweramps too.
Also more cabling, generally a more complicated setup/not as much just plug-n-play and maybe looks for some of you vanity girls out there????
Then there's that thing where when you have rackstuff, you inevitably find an excuse to need more rackstuff.

Just a pre and poweramp isn't enough anymore, you want an eq, an outboard compressor, a rackmountable tuner, a wireless unit and of course one of those glorified powerstrips with the pullout lights. Now you've got some 100+lb. 2ft. cube that's a mixing board short of being a PA system just to play bass.
