Personally I would choose a teaching hospital over the distributive model (setting aside cost for this discussion). While I'm sure both types of schools provide a good education in the end, it's nice having the teaching hospital on site. Here at WSU, students are able to shadow in the VTH starting year 1 if they want, and there's also job opportunities for people to work 1-3 year at the hospital, so you are able to get clinical exposure before 4th year, and make connections with clinicians if you choose. And I can't help but wonder, with the distributive model, how the quality of all the rotation sites is assessed? I just imagine it's more difficult to ensure consistency of quality with so many off-site locations to assess. And here, while there are some rotations you need to travel for, most of them are on campus, so there's less traveling for 4th year required. I don't know if this holds true for all schools on the distributive model, but most of the ones I've looked at charge the same tuition rate for 4th year, even though students are travelling for all their rotations and presumably wouldn't actually be at school most of the time? That just kind of rubs me the wrong way.
But obviously lots of people attend schools with distributive models and enjoy the experience, and graduate as good doctors. I'm sure there's pros to that model that I'm unaware of because I don't attend one of those programs.