I have heard both sides.

Decal:
Pros: Easy to apply
Cons: Heard it sometimes damages paint underneath anyway.
Doesn't last [neither does spray paint]
Questions: How hard to clean?
Does it hold wax?

Paint.
Pros: Cheap, easy to touchup.
May last depending on paint and application.
Cons: May not last
Defiantly Destroys Paint Underneath
May not turn out as you wished
Questions:
Can you use the vinyl over ruff paint?


I have painted many a car part on my previous 4runner. Decided I really wanted to stay away from paint with my new rover. But its really tempting.

Painted in the past

2 sets of rims: definitely can hold up if applied right touch up able

2 bumpers: learned its all in the prep front held up for the 6 months I had it,I rushed the prep with the back and it didn't hold up.

Rocker Panels: Sanded the lower doors and wheel wells, then used Rustoleum Spray Bed liner, great texture. Found that it the can did not put out consistently some spots would come out thick, others nothing at all. Held up good for the 2 months I had it. Held Wax, which really pissed me off.

Entire floor of 4runner: Used roll on hurculiner. Definitely held up good. Super easy to apply. However not smooth enough to use on the exterior of a vehicle. I hear their parent company duraback makes a smooth version. I got a sample in the mail but it appeared to just be a basic paint.


So it comes down to:

80$ V.S. 10$
Durability
Wax Holding..BILITY

 

Why would you wax the blackout? The purpose for the blackout is to reduce glare. So IMO wax holding is a non-issue.
I painted mine and it didn't really need serious touching up for 5 or 6 years. So figuring conservatively at 4 years before needing to be redone, it'll be 20 years before I've spent the cost of a decal.
It's not that the decal destroys the paint, it actually protects it, but then if you remove the decal after say 5 or 6 years, the rest of the paint on the car has faded and you'll see the spot where the decal was because the paint is newer looking. The effect can vary depending on where you live.
If you're careful masking and painting it'll look fine.
If you screw it up, you can just go over it with fine sandpaper and try again. I've read of people screwing up their decal and having to buy another.
If you use flat black Rustoleum or some such, you can always put the decal on it if you really don't like how it turns out.

 

+2 paint it flat black

 

Use automotive paint and a careful prep, it will hold up perfectly. You can go to an automotive paint shop and have them put the high quality auto paint in a can for you. Runs about $13/can but then you get the real deal.
I am sure some off the shelf brands may work - just have to decide which one.
The key is the prep. The area must be sanded and thoroughly cleaned with solvent - there is a solvent at paint shops made to remove wax and such. Then, get the correct tape to tape it off at the auto paint store - not just the crap for painting your house.

 

The first time I did mine I prepped it by washing it then going over the area with a new green kitchen scrubbie and painted it with Krylon flat black from the hardware store. It would probably have lasted longer than the 5 or 6 years if I wasn't always putting tools, parts and other stuff on it.

 

After spending it's life around Denver and now Seattle, the decal on my hood is still in good shape after 8 years on the truck. It's probably slightly grayer than it was off the showroom floor but not too bad. Just keep is washed regularly (with regular car washes or rag and some mild detergent). DON'T allow washer fluid to "bake" on the hood, because you will get permanent water spots. I haven't tried it yet, but I'm assuming Armor-All Protectant or something similar would really freshen it up(if the weather holds up I might give this a shot this weekend). Keep the wax away.

That being said, when it is time to peel it off and replace it, I am leaning towards painting it or possibly even Line-X.

 

Sorry, I didn't plan on waxing it. I just usually get wax on everything I don't want to.

 

If you really want to get crazy, seal it, use a good flat black automotive paint, and turn up the pressure on your gun and spray a satin clear. It will come out flat and you don't have to worry about getting wax on it. The glare reduction will not be as great, but for looks and longevity, it will be the best.