They all have pros and cons.
Even though some local theaters have shut down or offer fewer shows, we still are lucky to have plenty of choices in the San Francisco Bay Area. And there are times when those smaller productions (from small companies in tiny theaters) are a real thrill. I have seen terrific productions of Next to Normal, Natasha, Pierre and the Great Comet of 1812, my very first Sweeney Todd, Assassins, Hedwig and the Angry Inch, and, most recently, a fine and creatively directed production of Tick.. Tick... Boom! (still running at the New Conservatory).
There are the larger regional theaters which feature a lot of new shows and things that have appeared off-Broadway in New York along with a few Broadway shows as well as Broadway or off-Broadway tryouts. I'm putting ACT and the Berkeley Rep in this category. A step below. barely, is the San Francisco Playhouse, which puts on some excellent productions and occasionally brings in ringers like Nastascia Diaz (now in the Cabaret revival on Broadway) as a heartbreaking Sally Durant Plummer in a wonderful production of Follies a couple of years ago. (Musical revivals must keep the lights on at San Francisco Playhouse but plays are the bulk of their seasons.)
Those regional productions often are terrific, and I am rarely more pleased than when the director and actors really nail a show, especially when my expectations are tempered (Vietgone at ACT, Cambodian Rock Band at the Berkeley Rep). The Broadway tryouts are different. You know you're going to get high-quality, and at times absolutely stellar performances with top-notch direction and staging. The actual show might not be as good, but it's always interesting to see new work with Broadway stars or people who should be. I've seen a bunch of them in recent years.
We also have been fortunate this season to get impressive productions of A Strange Loop and The Lehman Trilogy (which just opened at ACT and I saw on Saturday night) along with the usual Broadway tryouts (Hippest Trip; Galileo, now running at the Berkeley Rep).
Touring productions are in some ways my least "favorite," if that makes any sense. But they serve an important purpose, as Kad notes, bringing a version of the Broadway show to the country. My first exposure to Show Boat, Carousel and Chicago and countless other shows all came on their national tours. The main San Francisco theaters are too big for many smaller shows and I am usually disappointed in touring shows if I have seen them on Broadway. But if I haven't, they're fine - and often quite a bit better than that. The Fun Home production which reopened the smaller Curran Theatre in 2017 remains one of my favorites, and I recently enjoyed the Funny Girl tour stop in large part because Katerina McCrimmon was terrific as Fanny Brice. Fingers crossed for Company, which I am seeing later this month. I'm not able to go to New York City every year, so it's nice to see a version of what I missed.
A last thought in response to ErmengardeStopSniveling: Whenever a regional company does Here We Are, which I enjoyed a lot at The Shed, I strongly suspect the adaptation (even without changing a word) will be a lot less forgiving of the rich protagonists than Mantello's version. He and David Ives (and Sondheim, for that matter) pulled their punches a bit.