some say the tape may fray off and clog ports. A company which I will not name in Illinois had a contractor do some hydraulic work. Total bill was somewhere north of $300,000 for the work. The company used teflon tape on all the lines and 3-4 months after install, the hydraulic valves stuck, the manifolds weren't routing fluid properly, and a whole slew of headaches. The teflon tape eventually frayed and clogged the pressure side on many components and needless to say alot of work was needed to fix it
In short, straight from Automotive tech class and being an engineer I have to say it is my opinion the tube sealant works just as well. Also, if you read any nitrous instructions, it always says to never use tape because of this problem. The only real good use for the tape is to fill excess space as in threaded PVC or cast iron items. An automotive application doesn't require this as much, so why take the chance?