PST is used for POP accounts. The way IMAP works is that the emails are saved on the email server and Outlook will sync to it, just like if you are in a corporate enviroment. I would recommend IMAP strongly if you will be using your email on a 2nd device (another computer, smartphone, etc)
You can add the inbox to your favorites, and they will appear in the same folder hierarchy. That's what I do anyways. But I prefer Exchange to Gmail for business needs. I use Gmail via IMAP for personal use. It can be nice to have your accounts (i.e. POP) in separate PST files.
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