If they are insolvent then say goodbye to both fiat and btc. Holding one over the other would be pointless
If they close down or run, then I would rather fiat. If they withdraw the BTC it is gone forever. If they withdraw fiat, it can be traced, confiscated, and maybe eventually returned to the customers. I would just make sure to screen cap or have some sort of proof of the amount of fiat you have on Gox.
This works for any case on any exchange, when there is fear you might loose holdings, always go back to fiat, where laws are applicable.
Yeah, money seems stuck in there either way at the moment. It would probably be easier to get cash back if the company went down, but it'll probably be easier to get BTC out once they start letting withdrawals happen again, but who knows if they ever will. Once they do everybody is going to want to get their money out ASAP and I don't know how they'll manage this.
