I don't see why it needs to be one or the other. Why not both?
There are many directories that are still very valuable in terms of link juice. The biggest problem with any directory is that it is usually only one or two links. Yahoo.com, business.com, dmoz.org, botw.org, and many other directories are very valuable. They are worth every penny of the $200 to $300 you'll spend.
Articles can get syndicated across hundreds, if not thousands, of different sites, and some of those can be pretty valuable sites. (Most will be worthless "scraper" sites, but if you write good content, your article will also get picked up by quality sites with a lot of
PR. Most of the article directories are free (or extremely cheap), so in terms of bang for your buck, one might say that they are a better investment, but it will take a lot more articles and a lot more time to get enough of them out there.
If you HAD to pick one or the other, I would say if you have more money than time, do the directories. If you have more time than money, go for the article directories (but plan on doing a lot of them).
With that said, I still come back to my initial question: Why pick just one or the other?
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