DFWP vs XLV web part

Whenever SPD 2010 is used to display data on a page from anywhere outside of SharePoint (XML files, databases, web services), the DFWP displays that data.


The XLV is used for list or library data. However, this web part is unable to allow form functionality, which would let the user manipulate the list data. 

So the DFWP is utilized when a form capability is required for a SharePoint list or library.

Unlike XLV, after DFWP is deployed to the SharePoint page, it can only be customized further using SD2010