Pros are mainly that you are starting with a blank slate so to speak, you can adjust the water to any pH or hardness you need. This is usually for keeping fish that require water that is vastly different from your water supply, or breeding more difficult species.
The cons are like you mentioned, $200, they waste 3 or more gallons of water for every gallon they produce, and you have to add some minerals at the very least to maintain pH.