That tool works great if you're stripping a bunch of speaker wire but it takes too long to adjust to cut a couple wires. I'd rather use a box cutter to strip a few cables. Banana Plugs look nice and are easily removed, how often do you disconnect your speakers? I have banana plugs on the receiver and bare wire on the speakers. If I ever have to do a little clean up, its easier to unplug from the receiver using banana plugs.
+1 to banana plugs. They don't affect the sound, and once you've put them on, disconnecting / re-connecting wires to your AVR or speakers will never be a chore.
As long as its a solid connection, there will be no difference in sound.
IMO your best connection will always be with bare wire into the binding post. I use banana plugs from my wall jacks, but where convenience dictates it's always a bare wire connection. SpeakON connectors are another highly regarded option but I've never used them.
And a wire cutter/stripper is only about $10 or so from the local hardware store. Better investment than banana plugs unless the goal is to plug and unplug the speakers frequently.
Your questions are answered: Speaker FAQ
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