Of course, not all routers (particularly combo router/modems provided by your ISP) support multicast DNS, so often this isn't an option.
The advantage of link-local multicast over a plain broadcast is it gives a unique address (IP and multicast) so the clients themselves can more easily filter them. That's about it. An mdns aware router just enables MORE flooding to happen (across subnet boundaries, where link-local is not supposed to go).