First, both guitars made by Fender are huge icons of the music industry. I'm a little irritated that I have to shop for a Mexican made one versus USA made. The pricing difference is, well, ridiculous. Fender needs to do something about this (and I don't mean disadvantage the USA versions). When I stood up & played for 4000 GM employees last summer I strongly felt the need to have an affordable American made Fender in my hands. By the way, the Mexican made versions are identical as far as I can tell from playing them. If I'm going to pay $5-600 more for American, I'd like to know why. That's not all labor cost differences.
Pros: I feel that the Strat has a better overall appearance, but the Tele has a distinctive tone that I love when playing blues music. Both have lots of versatility when hooked to a good system. A lot of guys trade out the pickups, but I'm very happy with my original ones.
Cons: Mainstream / 50's image by both, but the Tele has an even older look to it. I guess that's part of the appeal, but hardware updates would be a nice improvement without degrading the image. Out maneuvered by other companies on contemporary design to some degree. Hey it's 2009 guys! What's new? Not much bravery in the design studio. I think Fender would be surprised at how strongly people feel about them.
In summary, I would probably buy the Telecaster if I were making the decision today. It captures a sound quality & feel that's just hard to match in other guitars, but ask me tomorrow about my Strat. The romance is alive & kick'n!