I only use mesh for repair work when I'm using setting type compound, all new work I use paper tape, pulled out of a banjo. Mesh is great for diyers and novice tapers since it's nearly impossible to get bubbles in it from not properly embedding the tape with mud.
I believe it is appropriate to use tape for sheetrock/drywall jobs. And mesh for veneer plaster jobs. With Drywall - tape has exceptional strength especially for inside corners like the where the wall meets the ceiling. It can resist movements in the structure - mesh has no strength. But for Plaster - plaster is the strength - and mesh acts like a 'matrix' kind of like iron rods in poured cement.
P.S. although I have seen some plasterers use tape as well, go figure
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