Add to list as necessary. I've already pulled in a few items from other posts. 
We can come up with a referendum/consensus on the topic. 

Traditional Apps:
UP SIDE
Better performance
No dependent on an internet connection (if server is not installed locally)
Many people still prefer to own product outright
Product keeps working even if company goes belly up
Generally has access to system resources that allowing a web app to have may be 
problematic
Information is locally secured and controlled

DOWN SIDE
Require advanced development personel to produce (high cost)
Can be cumbersome to upgrade/update
Use local storage
OS Update can make app buggy or unusable
Data must be secured and backed up by trained professionals 

Web Apps:
UP SIDE
Nothing to download
Purchases can be subscription based, guaranteeing steady income stream (upside 
for the dev!)
Generally universal (provided they are developed to be so)
Sites are typically high availability (given good ISP SLA and servers running 
in data center)

DOWN SIDE
Dependent on internet connection availability and speed
Purchases are typically subscription based (downside for the consumer!)
Prone to drive by attacks (site is compromised)


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