We do about half and half. Will do more when my DH officially becomes a full-time SAHD here in a month or two. We would do full-time, except we have many family members watch DD who aren't really comfortable with hanging onto soiled cloth. Also, the care provider we originally had for her wouldn't do them.
We plan to CD as much as possible with DS. Reasons are:
1) cheaper over time (do have slightly higher electric and water bills, but nothing compared to buying diapers full-time)
2) better for baby's skin (we have NEVER had a diaper rash with DD. Could just be luck, but every time things get a little red down there, I put her in cloth and it disappears)
3) better for environment (especially when you can flush the poop with solids)
4) little baby butts in cloth look so cute!
5) supposedly leads to quicker toilet learning, since babies know the sensation of wetness. I think this really depends on the child, and on what kind of cloth you're using. Our microfiber inserts wick so well that I'm not sure this is even a benefit, and DD doesn't seem to care when they are wet or dirty any more than disposables.
We didn't have our s*** together enough to have cloth ready to go at the hospital with DD, but I don't think it would be a problem so long as you are very clear with them and supply your own wet bags, etc. Have your partner on this task, as you will probably be so wiped from labor and birth that what kind of diaper they put on LO will be the last thing on your mind! (Just my .02)
We also use cloth wipes and spray I make. Super easy - I just cut a bunch of cheap washcloths in half. Spray is water, a little aloe, and a drop or two of tea tree + lavender oil. I spray it on cold - DD doesn't seem to mind.
I haven't bought anything for DS yet because I'm not sure what route I want to take. Prefolds, or newborn fitteds? I do need three or four more Thirsties covers in XS for DS, for sure (we only have two now). Will DD be out of her Fuzzibunz in time for DS to grow out of newborn fitteds? Too many questions!