Both options are almost similar. You can notice that the device options you get from under the "Device definitions" tab are also listed under Device: drop down box after you do "Android Virtual devices-> New" .
Also notice the bottom line of the screen under "Device Definitions" . There are two icons informing which are generic definitions and which are custom ones. If you don't find any generic definitions closer to the real device you are targeting build a custom one as per the real device.