Hello Brian,
You might want to give TR-4333 a read, it has a lot of best practices on using clustered Data ONTAP with vSphere.
Performance is nearly equal, close enough to not really matter (it's even closer than the 9% in the TR mentioned with modern vSphere versions). Reliablity is the same...it's still a NetApp device providing the storage. If you're already using iSCSI then your network team is already familiar with the change in operational proecdures needed to support storage traffic on an IP network, so there's no need to worry there (I have seen many times in historically FC organizations where the IP network team will reboot switches and do other things which cause network "blips" anytime...this is bad when storage uses the IP network).
With that being said, the choice between NFS and block is primarily about manageability in my opinion. As was mentioned by @scottgelb, NFS datastores immediately show the benefits of storage efficiency (deduplication, compresson, thin provisioning) from both the NetApp and vSphere perspectives. When using a block protocol, that efficiency is only visible to the NetApp administrator. For example, if you use deduplication on a 1TB datastore that has 500GB of data which saves 50% of capacity, then the NFS datastore will show that 50% reduction immediately...the vSphere volume and NFS datastore would both show 250GB of capacity used. With block, the VMFS datastore would still show the datastore being 50% used, but the NetApp volume would only have 250GB used.
Hope that helps.
Andrew
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