There is no right or wrong answer. A lot of people will say drywall looks better. But personally, I think it's a really bad idea for the basement, regardless of the ceiling height. Not only is it easier to get at the existing plumbing and wiring, but it will be easier to run new stuff. What if you want to remodel your kitchen 5 years from now, do you want to have to rip out your basement ceiling at the same time? Also, with more technology emerging everyday, people are always wanting to run new wires for new toys.
With 8 foot ceilings, drop ceilings are even better than drywall. You don't have to worry about losing 2 or 3 inches of head room, you won't even notice. If your ceilings were only 6'6", losing 2 or 3 inches would cause some people to duck when they entered the room.