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Either works for 5-mans. You can heal any heroic as either. Both have advantages and disadvantages. When you're Disc, you'll miss Circle of Healing. When you're Holy, you'll miss instant Shields and wonder how you could ever have given up Penance. It'll probably come down to what you just like better. As a priest my biggest conundrum tends to be that both are so fun I end up respeccing constantly because I can't choose.
Funnily enough, I never feel this way because Penance has so little synergy with the holy tree.
If I am disc I tend to not spend a lot of time casting and really focus my heals on critical targets. Penance fits in really well here as an instant and big heal to specifically counter critical situations. As holy I spend most of my time constantly healing everyone - I concentrate Flash Heals on one group, build up Serendipity with them, and then launch a Prayer of Healing at a group I've been ignoring up 'till then. Just as the Prayer of Healing lands is the point where Circle of Healing fits in so brilliantly - to tie in with the constant stream of 100% pure global healing you can pop it when PoH finishes to instantly heal a whopping 11 people. You basically use CoH as a 'filler' to make sure you 'keep doing something' while still AOE healing. I'd have a very hard time fitting Penance into a holy playstyle. The only time I'd actually use it is probably if it gave me 3 stacks of Serendipity - I'd be alternating between PoH+ProM and Penancing a tank. Even then though, I'd need CoH to smooth everything out. And that is what I like about our two healing trees; they impact your playstyle so significantly that I rarely find myself actually 'missing' talents from the other tree (aside from niche gimmicks like B&S) because I am simply fulfulling another role.