This is part of an article from the Maccentral Online website:
While FireWire sounds like USB on steroids, the technologies serve different purposes. FireWire -- a much cleaner and more advanced spec than USB -- is for peripherals that need maximum bandwidth. USB is a medium bandwidth connection for peripherals such as digital still cameras, monitors, keyboards and mice.
But with USB 2.0 looming on the horizon, will FireWire wilt and fade? Possibly, but not likely. Our prediction (that is, the prognosis of Yours Truly) is that, even if version 2.0 does what's being promised -- and that's probably not going to happen anytime soon -- it and FireWire will coexist peacefully. It seems doubtful that USB 2.0 will encroach too much on digital video and audio territory that FireWire has slowly but surely conquered.
Why? FireWire can transfer data point-to-point (one device to another) while USB requires the computer to server as a go-between. In other words, moving data with USB means you have to move it from one doohickey to your computer, then transfer it from the computer to the other doohickey. FireWire can move data directly from one device to another.
Plus, as we mentioned, FireWire will soon hit speeds of 800 Mbps, late this year or early in 2001. And there's speculation of speeds of up to 1.6 Gbps a year or two down the road.
So expect USB and FireWire to live together, if not in harmony, at least in some sort of truce.
An analogy would be the difference between PIO (Programmed I/O) transfer mode and theDMA transfer mode when talking about HD's.
USB requires the computer to do the handshaking while Firewire is more efficient and peripherals don't need to be "coached"