If we are talking about preference, I like the "normal text style" as it moves up and out of the way when you click to fill in the field. If you are using placeholder text, then the form field name and the placeholder text occupy the same space creating jumbled text. The way around this for me (which is only a bandaid fix) is to not use placeholder text, which for most fields is acceptable.
The "text area style" and the "normal text style" do not seem to function the same way in that regard.
The "text area style" that does not move is directly in the same spot as where you begin typing in to fill out that field. See images at the beginnning of this post.
Either way, there is an issue with the form name text occupying the same space as the placeholder text (normal text style) and/or the typed in data (text area style).
At least with the Daycare theme it seems.