[Disclaimer: work at Cliqz]
Both techniques have their share of upsides and downsides, infact we also use an FST based model to perform splits i.e donaldtrump ---> donald trump. The problem with the FST approach is when the prefix has a typo. I tried the spell correct on the website you linked to, it seems to fail when the first character is incorrect. Thanks for the information though, it is always interesting to read and learn from other approaches :)