This is a fairly good read
http://media.hyperion.hk/dn/a123/123-brief.pdf
Basically, LiFe are tougher and generally have higher discharge capability, but they take up more room and are slightly heavier. LiFe can also receive a full charge in under 15min, whereas (in my experience) lipo is usually 1-1.5hrs. (charging at 1C).
My A123 hit the CV phase of their charge about 20s before they finish, but for my lipos It was normally like an extra half hour to get that tiny bit of extra capacity (if you don't know much about how lithium batteries are charged it is worth finding it, note that you can't use a nimh peak charger, you need a charger designed to do lithiums. Also, lipo and life use slightly different charge algorithm, nearly all new chargers do both though).
Life's cells have a larger voltage drop than lipo, I think this is largly due to people comparing them to bigger lipos though. E.g, I used to run 6s 4000mah 20C lipo's in my revo, then swapped to 7s1p A123. You can notice slightly less punch, but remember the A123's are nearly half the capacity of the 4000's. Running 2p A123 would probably be just as good, but take up nearly twice as much room lol.
On a truggy I think space isn't really a premium, so A123 is certainly a viable option. If your racing I'd tend toward lipo because of the weight reduction (which would be in the order of 100s of grams, depending how much battery you plan to run)
And lastly, A123 stay tend to balance themselves with cycles, so balancing isn't as crucial with A123 as it is with lipo (though still recommended).