Hardware encryption should offload the processing from the computer to the drive - where it is large amounts of data this could avoid bottlenecks on slower computers. If you PC is a decent spec then software encryption should be perfectly feasible and probably cheaper for the drive.
Also, software encryption will require the software to be compatible with the computer you are using. Hardware encryption, if implemented properly, should not need any such software on the computer - theoretically (I haven't looked) hardware encrypted drives should be accessible from anything with a valid port whereas software encrypted requires the actual software to be supported.