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A brushed motor uses carbon brushes that make contact with the armature, which transmits current and turns the motor. This type of motor is cheaper and easy to maintain, but it wears out faster and loses efficiency over time. Brushless motors, on the other hand, have no carbon brushes; they operate with electronic commutation through an ESC (Electronic Speed Controller). As a result, they are more efficient, have more power and last much longer. For beginners, a brushed motor may be attractive because of its lower purchase price, but those looking for speed, durability and performance will be better off with a brushless system.
A brushless motor can be up to 30% more efficient, which means you can drive longer with the same battery. They are also more powerful: a 1:10 scale requires LiPo batteries instead of NiMH.
In summary, choose brushed when you are starting out and want to keep costs low, and switch to brushless once you want more speed and power.