Yeah, thermal sources emit more of a blackbody spectrum (for reasons that should be obvious). They're also inherently less efficient for the same reasons. On the other hand, it's a bit easier to tune the spectra of other methods and a bit easier to get more luminous flux given reasonable installation parameters - so you see a lot of fluorescents in offices, kitchens, and other work areas (non-compact fluorescent have been here for ages and aren't moving). Still, the whole "ban incandescent bulbs" movement is...well, at least not something that's clear-cut. White LEDs can be made pretty good in terms of intensity and the degree to which their initial spectra accommodates the expectations of the human visual system, but they fade quickly and don't keep their original spectra.
But for something like decorative strands of colored lights, the emission spectra is sort of irrelevant since we're talking about narrow-band radiation. Any narrow-band source with a similar center frequency, fall-off profile, and luminous intensity will look fairly similar. There's something to be said for emission vs. absorption spectra (did it come that way or was it filtered), but that's not really something you can distinguish without a spectrometer and some lateral thinking.