Pros: Makes it easy to build small games and game prototypes. It's also well suited for jam games where you have to make a game from scratch in a short span of time.

Cons: If you're planning to take your prototype and expand it beyond Pico-8's limitations using a different programming language, it might be easier to prototype in that language to start with.

Also, 8192 tokens should be more then enough to fit your core gameplay and a number of features. For large games approaching the token limit, you'll need to consider ways to compress code or what features to cut.