Can someone give me any pros and cons for this:
redistributing connected routes + summarizing at ASBR versus creating new Area and summarizing at ABR.
When I try both scenarios, I see that I have a smaller ospf database with redistributing connected subnets.
When I look at the neighbors, The only difference I see if type-5 vs type-3.
Can anyone give me some info on why one is better?
When performing redistribution, you aren't exactly enabling OSPF on those interfaces. You are just announcing those interfaces to the rest of the OSPF domain as external routes.
When creating a new area and using the network command for those interfaces, you are actually enabling OSPF on those links and if those links are connected to other devices, you can potentially extend your OSPF domain.
No solution is better than the other one, it basically boils down on the business requirements.