I find myself sticking with Uncle Bob's package design principles. In short, classes which are to be reused together and changed together (for the same reason, e.g. a dependency change or a framework change) should be put in the same package. IMO, the functional breakdown would have better chance of achieving these goals than the vertical/business-specific break-down in most applications.
For example, a horizontal slice of domain objects can be reused by different kinds of front-ends or even applications and a horizontal slice of the web front-end is likely to change together when the underlying web framework needs to be changed. On the other hand, it's easy to imagine the ripple effect of these changes across many packages if classes across different functional areas are grouped in those packages.
Obviously, not all kinds of software are the same and the vertical breakdown may make sense (in terms of achieving the goals of reusability and closeability-to-change) in certain projects.