Given 2 functions, which should be faster, if there is any difference at all? Assume that the input data is very large
void iterate1(const char* pIn, int Size)
{
With modern compiler there shouldn't be any difference in performance between the two, especially in such simplistic easily recognizable examples. Moreover, even if the compiler does not recognize their equivalence, i.e. translates each code "literally", there still shouldn't be any noticeable performance difference on a typical modern hardware platform. (Of course, there might be more specialized platforms out there where the difference might be noticeable.)
As for other considerations... Conceptually, when you implement an algorithm using the index access you impose a random-access requirement on the underlying data structure. When you use a pointer ("iterator") access, you only impose a sequential-access requirement on the underlying data structure. Random-access is a stronger requirement than sequential-access. For this reason I, for one, in my code prefer to stick to pointer access whenever possible, and use index access only when necessary.
More generally, if an algorithm can be implemented efficiently through sequential access, it is better to do it that way, without involving the unnecessary stronger requirement of random-access. This might prove useful in the future, should a need arise to refactor the code or to change the algorithm.
Why don't you try both and time them? My guess would be that they are optimized by the compiler into basically the same code. Just remember to turn on optimizations when comparing (-O3).
To be sure, you must profile in your intended target environment.
That said, my guess is that any modern compiler is going to optimize them both down to very similar (if not identical) code.
If you didn't have an optimizer, the second has a chance of being faster, because you aren't re-computing the pointer on every iteration. But unless Size is a VERY large number (or the routine is called quite often), the difference isn't going to matter to your program's overall execution speed.
You're asking the wrong question. Should a developer aim for readability or performance first?
The first version is idiomatic for processing array, and your intent will be clear to anyone who has worked with arrays before, whereas the second relies heavily on the equivalence between array names and pointers, forcing someone reading the code to switch metaphors several times.
Cue the comments saying that the second version is crystal clear to any developer worth his keybaord.
If you wrote your program, and it's running slow, and you have profiled to the point where you have identified this loop as the bottleneck, then it would make sense to pop the hood and look at which of these is faster. But get something clear up and running first using well-known idiomatic language constructs.
In the "other considerations" column, I'd say approach one is more clear. That's just my opinion though.
Performance questions aside, it strikes me that the while loop variant has potential maintainability issues, as a programmer coming along to add some new bells and whistles has to remember to put the array increment in the right place, whereas the for loop variant puts it safely out of the body of the loop.