Well, the CXF documentation is pretty clear about the advantages of Dynamic Clients:
CXF supports several alternatives to allow an application to communicate with a service without the SEI and data classes. JAX-WS specified the JAX-WS Dispatch API, as well as the Provider interface for reading and writing XML. This page, however, describes the dynamic client facility of CXF. With dynamic clients, CXF generates SEI and bean classes at runtime, and allows you to invoke operations via APIs that take Objects, or by using reflection to call into full proxies.
In other words, you don't need the definitions of classes as shown in the documentation sample below:
JaxWsDynamicClientFactory dcf = JaxWsDynamicClientFactory.newInstance();
Client client = dcf.createClient("echo.wsdl");
Object[] res = client.invoke("echo", "test echo");
System.out.println("Echo response: " + res[0]);
Regarding the disadvantages, they are pretty obvious (and this is the price to pay): you are manipulating strings, you lost strong typing.