Definately numerous small powerheads are preferred over one large one. As far as the oscillating powerheads, I imagine that they are quite beneficial in eliminating dead spots and keeping detritus suspended, but if you have the recommended flow rate of 20x-25x in a reef tank, I don't think the back and forth movement warrants the cost increase.
I have three 170gph powerheads and they only cost me around $15 each.