I think there is a time and place for interactive whiteboards, however it does take a lot of work for an instructor to develop lessons using a Smartboard. I think for certain lessons, it can work, but not for everyday usage.
The advantages would be enbracing technology. I think it keeps students' attention and it involves them in the learning process. It also shows that you are engaged in the learning process, rather than just lecturing.
I think students would be more engaged in the learning process, however if you have issues or snags with using the technology their attention will waiver, so you must balance both.