I normally hand sew the binding (ok, I haven't actually finished all that many quilts... About 9 including 6 baby quilts). I only did it by machine on one, which needed to be a "quick quilt" for a friend to use during chemo. For her's I used a decorative stitch on my DSM. Maybe I should have turned the whole thing around and sew the binding to the back so I could turn it to the front for sewing it down - I did it the "normal" way and then decided to do the decorative stitching from the front so that it looks nice on the front. Unfortunately, I forgot to take a close-up from the binding, but I think it turned out ok. And my friend (who is not a quilter) just LOVES that quilt with all its imperfections and is using it all the time!
Conclusion: I would definitely do it by machine again! It's so much less hassle and faster. However, maybe not for a heirloom quality quilt...