Dynamo categories:
a) Sidewall: B+M Dymotec 6 £32, Axa HR £16, cheap tat £5-£10
These are for those who are fed up with battery lights (for any of several good reasons), and want to convert an existing hack bike to dynamo lighting at minimum cost. The bike should use medium or heavy weight tyres (Marathon or similar). Fitting may required middling brutal clamps now that dynamo bosses on the frame are rare and decent after-market fittings (Dynoshoe, fits to V-brake boss) are no longer available.
b) Sports dynohubs: Shimano DH-3N72 or better (3W), SON, SP or branded versions thereof*. If buying from Germany, don't get a 1.5W hub by mistake.
Performance-wise, there isn't any real difference between any of these. Lab tests with suitably chosen scales may show differences, but there's nothing you would ever feel with your legs, or even by on-the-road timings. Choose on cost, weight, warranty period, maintainability, perceived quality/reliability, and available fittings/drillings. SON have a 5 year warranty, and service is in Germany at something like £55 after that. SP is 2 years, service via Zyro (importers) at £25. Shimano is also 2 years, service after that is DIY (which is possible, with care for the wires). With Shimano hubs, you can also replace the whole generator/bearings/axle hub core. It's no cheaper than a new hub, but saves a wheel rebuild.
*Alpkit, Exposure, Supernova (etc). Supernova has upgraded bearings & seals, others are standard SP hubs.
c) Cheap Shimano dynohubs, other brands such as Sturmey.
These will typically have more drag than the sports hubs (eg 3W lights off rather than 1W), but it's still not much compared to tyre drag etc, and you'd be doing well to feel it. It's the sort of thing that may play on the mind on a long ride though.
d) oddball stuff - eg spoke generators, that fit to the nearside of the rear hub, turned by a peg in the spokes. From what I recall, they are on the heavy side, and give a fairly low output at low speed. Not the sort of thing for a regular bike, but may be usefully better than a sidewall generator in some cases, such as on a cargo trike or something.
[addition] There's also the Velological dynamo, that runs off the side of the rim rather than the tyre. Small, light, relatively expensive (~€150, iirc), and zero drag when off. I'd still worry about slip in wet weather though.
I use SON hubs. They were the only option back in 1998, and I've had no reason to think about changing since.
Lighting problems since I started using dynohubs have been...
a) half a dozen or so blown bulbs
b) 4 failed battery rear lights, before I ran a cable to the back of the bike for a dynamo rear light, plus a couple of others that died after being left rattling about in the bottom of the saddlebag for too long.
c) A B+M 4D-lite plus rear light - standlight electronics; didn't come on until I'd been riding 30 secs or so (replaced by a Seculite)
d) A Solidlight that failed such that it went out as soon as I went over 12 mph, and wouldn't come back on until after I'd come to a complete stop. I was doing 44 mph when this started, on a very dark hill. Exciting! (sent back for repair - there was a general recall soon after)
e) A Seculite that got the lens & reflector knocked off, along with the light spreading widget (replaced)
f) Someone turned my lights off at the pub (presumably trying to be helpful and turn the standlight off), and I spent 3 or 4 minutes checking the dynamo connections before I remembered the switch (it lives in Senso mode, normally)
Everything else has been home workshop - upgrades, moving bits about etc