The main difference is fairness, in other words are requests handled FIFO or can there be barging? Method level synchronization ensures fair or FIFO allocation of the lock. Using
synchronized(foo) {
}
or
lock.acquire(); .....lock.release();
does not assure fairness.
If you have lots of contention for the lock you can easily encounter barging where newer requests get the lock and older requests get stuck. I've seen cases where 200 threads arrive in short order for a lock and the 2nd one to arrive got processed last. This is ok for some applications but for others it's deadly.
See Brian Goetz's "Java Concurrency In Practice" book, section 13.3 for a full discussion of this topic.