The thing about vectors is that they are math based and therefore defined by points and paths - that makes them totally scalable which is why they are great for making things like logos. Unlike things typically made in Photoshop which are mostly pixel based, they are not really scalable and become pixelated when scaled up too much. It really depends on what you are trying to achieve. The vector tools in Photoshop are greatly improved, but if you are working with type and logos, it is still best to create them in Illustrator (a vector based program) and bring them into Photoshop as a Smart Object. That way you have the best of both worlds. The Smart Object remains a vector based layer and you can continue to edit it in Illustrator.
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