Better in a bag, IMO, as it won't remove nutrients as quickly and has better "longevity", hence the monthly changeout. There are some things carbon removes that you don't want stripped from the water, like iodide, etc., but life's a comprimise. Slow removal can be good or bad, depending what you're trying to do with the carbon. If it's just for "routine maintenance", it's a good thing. If there's something you're trying to remove fast (like after a redbug treatment or to reduce coral warfare toxins), a forced flow or fluidized bed of carbon would be preferred but with a more frequent changeout.