- applications access them/compute them faster than normal strings
- localization
The hello string is defined in the res/values/strings.xml file. This is the recommended practice for inserting strings to your application, because it makes the localization of your application to other languages graceful, without need to hard-code changes to the layout file.
- language (computer) translation
For me the first point is the deal breaker, anything to make your app faster. (this is assumed from the countless hours of creating my own applications and being told using string.xml is best from an optimization point of view, plus, especially in a long listview, it does seem to load faster for me (droid A855) )