Wordpress - Difference between an archive and a page listing posts

Archive Page

An archive page is part of the WordPress Template Hierarchy, and is the template file WordPress uses to display the archive index list for a given post type. The custom post type archive template hierarchy is as follows:

• archive-{posttype}.php
• archive.php
• index.php

WordPress uses the query parameters to output this page, and posts are output via the main/default query loop.

Advantages

• Pagination works out of the box
• No user intervention required to create/display; WordPress creates the archive index view automatically, based on register_post_type() parameter has_archive

Disadvantages

• Pretty permalink might not be as pretty as you'd like - though you can modify it via register_post_type()

Custom Page Template

A custom page template can be used to display any arbitrary content. When used to display a listing of custom post-type posts, it does so using a secondary query loop.

Advantages

• User control of pretty permalink, via static page permalink

Disadvantages

• Pagination will not work out of the box, and must be fixed
• User intervention required to create this page: create static page, assign page template

Assuming these are going to be all posts within your posts section, and not excluding any, why not create a page in WordPress called "News" and then set that to as your "Posts Page" in Settings -> Reading? (I would have left this as a comment, but it won't let me unless I have a reputation of 50).

The Template Hierarchy may contain some useful information for you as well. I believe in most cases the normal content loop and archive loop are the same, with the archive template it has the variable Page title (ex: "Daily Archives:" "Category Archives:") and you can also create additional archive templates based on different data (like post type, specific category, etc).

Hope that helps!