Very common question and much simpler than you would've thought.
What's a Baselit saber?
A Baselit saber is lit from the base, like a flashlight. The light is projected from inside the saber's hilt and shines upward into the hollow tube/blade. This allows for a blade that is very strong and easily replaceable.
What's a Pixel saber?
Pixel Blades have a strip of LEDs that run from top to bottom inside the saber's blade. The light is generated through those LEDs. This allows for more light effects like fire blade, rainbow mode, and a much brighter blade. Our lightsabers to be battle ready and come with a full year warranty. These pixel blades can take a beating, and the base lit blades can take more of a beating.
So why would I choose one over the other?
The trade-off is basically durability for blade-effects and the experience. If you know you're going to be doing a lot of heavy dueling, a Baselit saber is likely what you're going to want to buy. Whereas if you're cosplaying, a collector, or even if you just want to show off a cool saber at a party, a Pixel saber will make your inner-Grievous very happy.
Either way, whatever saber you choose, it will make a fine addition to your collection.