Delete + Insert is almost always faster because an Update has way more steps involved.
Update:
Write New variables to disk (The entire row)
(This repeats for every row you're updating)
Delete + Insert:
Update PK Index with locations of new records.
(This doesn't repeat, all can be perfomed in a single block of operation).
Using Insert + Delete will fragment your File System, but not that fast. Doing a lazy optimization on the background will allways free unused blocks and pack the table altogether.