I will say from personal experience. Cloth Diapers greatly reduces/eliminates diaper rash. So my personal testimony that cloth is healthier for your baby when it comes to diaper rash. Now I have been doing some research about "dioxins". There is a lot of info about the harm that can come from this chemical. The ? that remains is how much of an impact does this have on the health of our babies. Here is a borrowed statement-
"The latest buzz in child-care products to hit global news is the link between dioxins, disposable diapers, and health care issues. Could that diaper you're wrapping around your baby's bottom be one that increases the risk of skin irritation and diaper rash? Even worse to consider is the question whether the dioxins disposable diapers contain cause cancer or immune system depression. Those are scary thoughts for a new parent wanting to give baby the best."
If you are wanting more information there is a link to where I picked up this statement.