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What is the difference between a VTL and a Standalone Device?

Is this more about how many streams and simultaneous connections can be open at one time?  I have a DR4300 and it will only accommodate four VTLs.  I thought I was supposed to make a VTL for every backup I did, each server having it's own VTL on a big NAS somewhere (when you don't have an appliance.)  On top of that, page 6 in the Best Practices for VTL manual looks like VTL is better than a regular NetVault Backup VTL.

My point is that if I want to organize the way I want, I have to use the NVBU VTL.  I also don't want to lose any compression the DR gives.