I use both UP3 and HSFX and enjoy them both. I'm finding that most new content, i.e. new aircraft, DBW, DBW 1916, etc, is built for UP3 and the ability to create moving dogfight maps (MDS), makes for great gameplay on my squad's server.
On the other hand, HSFX's ability to be installed over 4.11 gives you the improved ai and waypoint actions in the FMB. Also, most of the servers that allow mods on Hyperlobby use HSFX.
In the end, if you have the hd space, and you don't mind doing the occasional tweaking to make them behave, I would suggest you use both.
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