There really isn't a clear cut answer to your questions. Much depends on the links between your devices (infrastructure) and how saturated they are with user traffic, CW2K server capabilities, your syslog logging levels and your SNMP trap levels. Cisco.com has some great White-Papers on Network Management.
I can say having syslog and snmp traps (plus other management/security applications) have helped our organization locate troublespots, conjestion, and even illicit activities, while still not impacting user traffic enough to warrant NOT doing syslog.
In regards to your CW2K server, there is a tradeoff; the higher the logging level, the more disk space CW2K requires. However, if you look in the CW2K help section, there are instructions for clearing out your syslog entries periodically. Scripting/scheduling syslog cleanup or using "logrot" work extremely well.
HTH
Steve