One of the considerations with regards to log shipping is the file size of the logs and the pipe with which you are going to be using.  Failover doesn't always mean locally to a server sitting in the same room due to a problem with the primary server.  DR requirements could be a failover due to bigger issues, ie Hurricanes if you happen to be doing buisness in the southeast.  DOH!

Keep that in mind when deciding on which way to go and how you are going to be implementing the log shipping solution.  I know there are products out there that can compress the log prior to shipping and uncompress on the receiving side (this is not a plug for those products, just pointing it out).

Just my 2cents.

Mark