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Vmware snapshot state includes the virtual machine’s powered-on 7 off and suspended,data includes all of the files that make up the virtual machine. This includes disks, memory, and other devices,
Windows restore
restore your computer's system files to an earlier point in time it not include the powered-on 7 off and suspended data
It's better in terms of easy management, speed & functionally to use VMware level snapshot than guest OS level.
the snapshot in vmware is like taking an image for that Vm and the exact statues for that Vm
so if there is App loaded in the ram for example when you retrieving that image it will be loaded to Vm ram
windows system restore will restore just the changes in the HDD and what it contain (registry,files...)
and there is so many differences in both method
this is in short