VCE is the good option by patients who is containdicated endoscopy, but not offer possibility for biopsies and intervention endoscopy. VCE is especially dedicated for small bowel pathology (bleeding erosions, ulcers, polyps etc).
The endoscopic capsule has restricted indications, such as bleeding from the small intestine. However, even this indication has better alternatives, such as enteroscopy. That is, less and less indication for this method.
Well sometimes precise localization of lesions can be a challenge. Also it has few drawbacks as limited wireless communication, limited imaging area, and one of the most important one is the lack of control of capsule from outside.
The conventional endoscopy and colonoscopy devices are unpleasant, but they are fully controlled. The capsule that contains camera and transmitter is not able to be controlled, at least for now. It flows following digestive system within human body. The expected image may not be obtained. As it uses battery and size is matter, one way communication from capsule to external device is preferred, which makes limited protocol can be applied. Error depends only on FEC.