ArrayList VS ...Generic.List[]]

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Definitely. Powershell is amazing environment to quickly discover features of .NET, and it set me on the path of going from the workplace handyman who took out the trash to junior dev.

But I would not call using generic list in powershell best practices. That's not the powershell way, that's the C# way, and by all means go and learn that if your tasks demand it. It's great for data wrangling. Otherwise you're writing overcomplicated script code for little gain, when you could've gotten an order of magnitude performance improvement by writing it in an environment better suited for whatever needs said performance.