I assume you mean better from the end user's perspective, right?
From my perspective as an end user, I prefer the multiple product approach because it gives me more options. I can more likely find a product that more closely suits my exact needs, rather than having to adapt to the product that is available.
Does the multiple product approach mean each product is a little less polished? Maybe, but it doesn't have to be that way. Besides, that is a price I am willing to pay in order to have a product that suits my needs better.