As you’ve seen, it works either way. However, the second way is just a list of entities and you can’t customise how they’re displayed, what they do when you click on them etc. The first way, using an entity object for each sensor, gives you more control.
Note that changing things like icon and name here only change the display of that one instance in the card. They do not update the entity. I find it handy for displaying abbreviated names in dashboards created for small displays (mobile devices) without affecting my main dashboard cards.