Database first and model first has no real differences.
Generated code are the same and you can combine this approaches. For example, you can create database using designer, than you can alter database using sql script and update your model.
When you using code first you can't alter model without recreation database and losing all data. IMHO, this limitation is very strict and does not allow to use code first in production. For now it is not truly usable.
Second minor disadvantage of code first is that model builder require privileges on master database. This doesn't affect you if you using SQL Server Compact database or if you control database server.
Advantage of code first is very clean and simple code. You have full control of this code and can easily modify and use it as your view model.
I can recommend to use code first approach when you creating simple standalone application without versioning and using model\database first in projects that requires modification in production.