By dynamically linking with /MD,
- you are exposed to system updates (for good or ill),
- your executable can be smaller (since it doesn’t have the library embedded in it), and
- I believe that at very least the code segment of a DLL is shared amongst all processes that are actively using it (reducing the total amount of RAM consumed).
I’ve also found that in practice, when working with statically-linked 3rd-party binary-only libraries that have been built with different runtime options, /MT in the main application tends to cause conflicts much more often than /MD (because you’ll run into trouble if the C runtime is statically-linked multiple times, especially if they are different versions).