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USB Mixer vs Audio Interface

I was going to buy a Focusrite or Presonus audio interface. Then, I thought about an USB mixer with an audio interface like the Yamaha MG10. The MG is a very good 10 input mixer with preamps, and the MG’s audio interface capabilities seem comparable to those of Focusrite and Presonus. The price is $199. So why don’t I see more people choose an USB mixer over an USB audio interface?
 
Either should work just fine, a lot of it comes down to personal preference in workflow and application. If you are live engineering and recording, then a mixing desk with more channels and a digital interface may make more sense. If you’re tracking individually in a studio setting, then fewer channels with a control surface probably makes more sense.

Also, at $200 total cost, the differences are probably going to be less apparent, though splitting that money between 10 channels vs 2 channels should illustrate the potential quality difference in components.

When you’re spending several thousand on channels, you’ll be making decisions about what flavors you want (eg mid punchy American vs silky big bottom British vs immaculately clean), how many you need and how you’ll use them.
 
I was contemplating the same options a few years ago, in fact the same mixer. But, I went with the Presounus Audiobox 44VSL that comes with a full DAW Studio One 3 Artist. Reason is, I only record a couple of tracks at a time, no more than 4. And, in the past I've used interfaces so for me it's a lot easier to setup the tracks for recording, and use the DAW to do the heavy work on levels and mixing. It's all personal preference. Some like using a console and mixer system because it allows for live tracking and recording multiple tracks (8+) at the same time. Anyway, that's my take on why some use the interface and others use the console/mixer.
 
I had a MG10XU. Avoid it, it has only left and right outputs to computer (i.e. just two channels) which makes recording a mess. Especially, if you need monitoring through the same mixer.

Entry-level sound cards from Focusrite and Presonus are way better, I owned both. I also own another kind of hybrid mixer that's nicer than Yamaha, but still worse that entry-level soundcards.

If you're ready to spend $2000 and up on a nice mixer, then you can debate. But a cheap USB-enabled mixer will be worse than an entry-level sound-card.
 
I was torn on this for a while myself. I wound up going with an interface. I thought that USB mixers had nice effects, and I really liked they have the ability to to record more than 2 channels at a time. That being said, I was informed by a lot of people that daws have superior eq'ing abilities compared to the less expensive USB mixers, and also come with more than an ample amount of effects. Several of which are commonly found in the USB mixers. I also realized that at the time, I didn't need to be able to record more than 2 channels at any given time. My current interface is starting to crap out, and I was again thinking about a usb mixer, but in the end, I'm still going to go with an interface, only this one will have more than 2 channels.
 
I ended up getting a Behringer X18, kind of half way between a mixer and an audio interface. I needed a new audio interface with a lot of channels and half decent preamps, and already knew the Behringer X stuff from some of the gigs I do.
Admittedly, this is not as simple to run for a quick and dirty gig as a pure HW mixer with real faders, but for me it is the perfect compromise.