The major difference would be that $(".searched", context); can take a variable as a context as well. It is effectively doing $(context).find('.searched'); under the hood, and I think the second version is more readable anyway, so I usually use that.
The use for this situation would be something like this:
$.fn.highlightSearch = function() {
return this.each(function() {
$('.searched', this).addClass('highlighted');
// the commented line performs the same thing:
// $(this).find('.searched').addClass('highlighted');
});
};
$('#context').highlightSearch();
$('.somethingElse').highlightSearch();
Notice that in this case, you can't simply append the new selector on the end of the original.
If you have no other reason to hold a copy of $('#context'), then using $('#context .searched') is going to be quicker, and simpler. However, if you already had $('#context') stored in a variable, its better to use .find(select) or the $(selector, context) form to search for your contained elements.