Tim,
Wikipedia has a good section comparing the advantages and disadvantages of NiCad to other battery technologies, including NiMH.
Based on my understanding of battery technologies, NiMH is usually used for higher capacity battery, hence its use in the 3.0Ah battery. Ampere hour (Ah) is essentially a measurement of how long it takes to discharge a battery (or battery capacity in simpler terms). Unlike NiCad, NiMH batteries do not have a memory effect meaning that partial discharge before recharging doesn't have an effect on the battery's ability to fully recharge over time.
However, NiCad does have a memory effect and should be fully discharged and full recharged to optimize battery life.
If any part of that is incorrect, please feel free to correct me.