What exactly is the difference between handling login success/failure in the Meteor.loginWithPassword callback vs using the Accounts.onLogin and Accounts.onLoginFailure methods?
The largest difference is that Acconts.onLogin and Accounts.onLoginFailure methods can be called on the server while Meteor.loginWith<Service> methods can only be called on the client.
With those methods you can create application logic that handles successful/failed login attempts, e.g send a notification email to the user that either he/she or someone else has failed to login to his/hers account five times in a row.
What you do with these hooks are up to you, but they are available if you need them.
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Makes sense. Good to have options 
Thanks!
Accounts.onLogin works with client also now 