advantage of PWM is that such solution is cheap, disadvantage is that output is noisy and not stable.
Another disadvantage is that for most LED operating at max current rating is less efficient than operating it at lower current.
For example below, operating the LED at 1000mA drive current is 20% more efficient than doing 50% PWM of 2500mA drive current. It usually also last longer too.
In most LED applications, this doesn't matter. Also, the fact that the LED is being PWM'ed does not mean it has to be used at it's maximum current rating. If long life is required, the current can be reduced with more LEDs.
I think automotive tail lights are an example of PWM that I don't care for. Maybe my eyes are a bit different from many, but I can see the blinking, when I move my head or eyes. Instead of a smear, I see multiple tail lights as my field of vision moves. The first time this happened to me, I was entering a high speed road where the merge lane was non-existent. I had just a moment to look over my shoulder before I would have to hit the brakes hard to get stopped. As I turned my head back, the taillights of the only car suddenly looked like several cars! I had to panic stop as I thought I had not seen the other cars!
Now, it is more an annoyance, but still a bother. It's all because they are saving the cost of the coil and cap to smooth the current so the LED doesn't blink. They could also fix it by increasing the frequency.