Recs.
Updated
SpecsUpdate
Pros
Pro Group video support
If you have signed in your Google account, Hangouts allows making video calls with up to 10 people or one-on-one. There are business, education and government solutions that increase the participant count to for video calls to 15 as well as offers support for those accounts.
Additionally, you can switch between using either the front-facing or rear-facing camera on your phone or tablet.
Pro Free and cross-platform
Google offers all features of Hangouts completely free on iOS, Android and web with quick and reliable sync across all platforms. It's also tightly integrated in other Google services - it can be accessed from services such as Gmail, Google+, Chrome.
While the standard Hangouts offering is completely free, there are business, education and government solutions that increase the participant count to for video calls to 15 and offers support that may cost money.
Pro Google Voice integration
Google Voice is a service that enables making and receiving free phone calls within US. Google Voice forwards incoming calls to all connected devices and allows placing calls from any of the connected devices, but they will show as coming from the Google Voice number.
Hangouts completely integrates Google Voice, allowing you to place calls and receive texts and voicemail from all of your devices. The Hangouts app for Android also includes a needed dialer for making calls with the users Google Voice number.
Pro Free calls to US and Canada from anywhere in the world
Hangouts app for Android can be extended with an optional dialer for making calls. Most calls to US and Canada are free and international calls have cheap rates.
A Google Voice account will be needed in order have a number that allows these calls to be made.
Pro Advanced status sharing
Hangouts can inform about the status of other users including what device they are currently using, whether they are in the middle of a call and when were they last seen. This allows making sure that you're not disturbing someone when initiating a conversation. It's possible to granularly turn off status sharing.
Cons
Con Transitioning to corporate orientation
Google is turning Hangouts in to a Slack competitor. It's unclear what the future of Hangouts is, but Google has said the consumer Hangouts we now have 'isn't going anywhere.'
Con Lack of end to end encryption
Communications are encrypted between client and Google servers but not from sending client to receiving client. This means that there is still a possibility for someone other than the receiver to read your message if they have access to internal Google servers. But it allows also lightweight chat history search, spam protection and other features.
Con No way to moderate groups
If a member of a group chat room becomes disruptive, or there's some other need, there's no way in Hangouts to remove somebody from an existing chatroom. Similarly, if somebody is no longer active, there's no way to remove that user from the chat room to make slot for new active members.
Con SMS messages sent from the web app can't be sent outside North America
SMS messages sent from the web app can only be sent to number in America and Canada - sending to foreign numbers won't work, although you can still receive texts from anywhere.
Recommendations
Comments
Out of Date Pros + Cons
Pro Combines cellular and data messaging
Hangouts allows sending and receiving SMS, MMS and data messages in one place. It's possible to switch between message types in the compose view at the bottom left corner of the screen.
Pro Comes bundled with Android
Since version 5.0 Android devices include Hangouts as part of the pre-installed apps.