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A friend of mine currently plays Iron Warriors, and it seems like an interesting army however he and I have been arguing over which is better for the list Predators or Defilers?

I personally like the ability of 4 Predators with Auto Cannons, and Heavy Bolters for truly horrific anti-infantry and light vehicle killing, since most people won't be fielding more than 2 heavy tanks, which a couple obliterators can deal with. 

He seems to be fanatical on pie plates of doom, and has been fielding 3 defilers and a Basilisk.  I think this works reasonably well but is rather ridiculously exspencive. 

I'm an Iron Warriors player and rarely go very heavy pie plate. Though is possible this is largely due to my atrocious ordnance rolls. One bassy and one defiler is the usual count. I never use a pred with chaos. None of the guys I play with has a horde or just squishy army so I don't see the point. For me the extra points are worth the versatility. They are a bit overkill for cheap hordes, but the ability to smoke 3+ and too smash tanks means I'll always prefer the ordnance. There are cheaper ways of getting lots of HB death anyways.