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As to the advantages and disadvantages of the different densities, at its most basic level, the softer the pool cue tip, the more likely it is to mushroom or flatten out with each hit of the cue ball. What this means is that a soft tip will require more maintenance than a harder tip.
With a pool cue, however, which will have a larger tip size, the shaft can account for more of the weight overall so some pool cue makers dont necessarily use ebony for the butt, and use things like Rosewood or other less dense (and less expensive) cues.