WPA-PSK is great for home users, easy to set-up, most advanced security without extra items. Only a preshare key is required to access network.
WPA-802.1x is basically to do with Radius servers, so you can also authenticate users using a password and username. This is the most secure, but requires a server. Therefore only enterprise users generally use this, unless your crazy like me and feel like setting up a linux radius server for fun.
I use WPA-PSK with TKIP encryption and a pre-shared key both at home and at my office for all staff.
It is quick to set up, extremely secure (if you choose a resonably complex pre-share key) and has nowhere near the setup issues of WPA-802.1x
WPA-802.1x entails a system administrator setting up and configuring server features for what is, in reality, a two stage (or at least a two technology) system.
Without writing pages it is difficult to summarise.
Out it like this, I have a background in systems administration and I have one server at home and two servers at my office. Rather than use WPA-802.1x I plumped for WPA-PSK at both properties. Either I'm a lazy hack or I'm entirely satisfied with what WPA-PSK does for me and my staff (or both).