Disclaimer: I'm not a MySQL expert ... but this is my understanding of the issues.
I think TEXT is stored outside the mysql row, while I think VARCHAR is stored as part of the row. There is a maximum row length for mysql rows .. so you can limit how much other data you can store in a row by using the VARCHAR.
Also due to VARCHAR forming part of the row, I suspect that queries looking at that field will be slightly faster than those using a TEXT chunk.