Based on that what i know, GWT-Graphics is based on SVG. while GWTCanvas(which is actually part of GWT main line) is based on canvas element.
now, quick comparsion. For all drag and drop thing, SVG was much easier and quicker (when o was testing drag and drop when i had large abount of elements, my program based on canvas was much slower than similar stuff based on SVG
Other advantage of SVG based library is canvas is not supported y all browsers (actualy older versions of ie imight have some issues)
from the other hand, canvas is much quicker while you need to draw massive number of objects, canvas is definietly your choice.