It depends on the complexity of the models and how many there are. With Ray Trace Objects OFF, the trees are rendered with the micropolygon rasteriser. Render times are quite sensitive to scene complexity or detail. When you ray trace these objects, however, render times scale in a more friendly manner as you increase the amount of detail in your scene. That's because because ray tracing is more sensitive to the number of pixels and anti-aliasing settings, and a bit less sensitive what's actually in the scene. With the kinds of scenes we render these days, where there might be many polygons occupying the same pixel, ray tracing is usually the best bet and is getting better all the time.
I'm not sure I agree about which image is better, although I haven't compared them side to side. In TG, ray tracing the objects usually produces a better image.
Matt