Do yourself a favor and leave them outside unless you never intend to use anything but iPhoto. Many applications can access the iPhoto Library, but you occasionally run into some that don't. And while it's easy to get inside the Library, it's a real pain to find things. And once you've gone that route it's hard to go back.
Sorry - and with respect - I would disagree. The whole point of iPhoto is that you shouldn't have to "get inside" the library. If you need an image outside of iPhoto, you let iPhoto export it. I have a folder specifically labeled as a TEMP folder (for LR exports, but same theory as iPhoto). Exported images automatically go there, I use them, I delete them. Keeps the things clean and lean.
The only downside is that you end up with duplicates and it takes space.
That can be a big downside if you are trying to back up all of the images. Now one has to back up several locations. Plus is the final image the one in the iPhoto library or the one in the managed directory. The problem with duplicates is determining which one is the finished version.
But depending on how you store things, that might actually be a positive. I treat all my outside pictures as archives and store them on an external, so I have it incorporated into a backup plan. If you do edit it outside iPhoto you just reimport the edited version.
Are you not backing up the iPhoto library? iPhoto can be set up to use an external editor instead of it's own editing engine. This means one doesn't need to "reimport" - it's just seamless.
I also use tagging a lot, and I find it's easier to do outside iPhoto. I use Leap for that, and Punakea.
Not familiar with these. Do they bring added functionality over albums/events/projects/keywording?
And some batch processing is done easier outside iPhoto as well.
Fair enough. In my case, the batch processing I do is for images that are being used - so I'm exporting anywhere. They go to my TEMP folder, where I have an alias to my usual batch processor. Once the processing it done I delete all the images (not the alias) in the TEMP folder and I'm good to go for the next operation. Unless I know for sure that this operation is a one-off, I save it as a pre-set so I don't have to do the work again.
Keeping them outside keeps options open; you loose little or nothing.
In my experience you would lose control of knowing which images have been used and where. Which images are the "final" version. Backups become more complicated.
But - it's a free world.... I'm not trying to change how you do your work. If it works for you, then that's great. I'm just making sure that both options are presented for those who are still deciding what will work best for them.