It's a very interesting question.
You can use both of them, there's not any strict rule about this subject, but using URI path variables has some advantages:
But if you use path variables, all of this services can cache your GET requests.
It gives the user more information about the structure of the data.
But if your data doesn't have any hierarchy relation you can still use Path variables, using comma or semi-colon:
/City/longitude,latitude
As a rule, use comma when the ordering of the parameters matter, use semi-colon when the ordering doesn't matter:
/IconGenerator/red;blue;green
Apart of those reasons, there are some cases when it's very common to use query string variables:
http:// www.google.com/search?q=rest
To sum up, there's not any strong reason to use one of this methods but whenever you can, use URI variables.