Neither has resulted in any bans but more people use emuMMC than AutoRCM for avoiding a ban. Personally I use AutoRCM as it not only eliminates the need for a jig but doesn't take up 32 GB on my SD card.
You do not need emuMMC to update your firmware to 8.1. You can update your console normally with ChoiDujourNX as it updates your firmware without burning fuses by enabling AutoRCM.
Is your SD card formatted as exFAT?
Well sleep mode exists so unless you need to reboot into a different mode, there is not much reason to turn off the console. And unless you want to boot into pure stock/OFW, there is reboot_to_payload which allows you to reboot the console into any payload while it is still on. Not to mention that Pegascape requires an Internet connection which is not as accessible as a dongle or other payload injector that can be used on the go. You can even use your phone to send payloads as long as you have a USB cable. So yes, most people with unpatched consoles send payloads via USB to boot CFW while Pegascape is mostly reserved for people who have patched units running firmware 4.1 or lower. But since you updated with the homebrew application ChoiDujourNX which prevented fuses from being burnt by enabling AutoRCM, you can downgrade your firmware back to what Pegascape supports.
Oh yeah, duh, of course, usb is much easier than the internet. I always use my switch in airplane mode, so I totally forgot I had turned airplane mode off for pegascape. On my wiiu I don't use an internet connection at all though for my browserhax, I just host the website on my home computer and then use my home wifi. Which is great for a wiiu, but since you're right a switch can travel, making my own copy of the pegahack website for my own home wifi.... sounds bad.
I wasn't aware sleep mode was so popular. I'm pretty sure that a full battery put to sleep mode for about a month dies, but that a full battery powered down loses about 1-2% power per year. I'm always afraid that if I put my switch to sleep, I'll forget it exists for 1-2months and then the battery will die. Which is really bad because leaving a lithium battery dead for an extended period of time permanently damages it. I might be biased though against sleep mode, maybe it is more battery efficient than I give it credit for.
edit: Also thanks to everyone who has helped me! I couldn't've done it without you. Hopefully I won't be back asking anymore silly questions anytime soon
edit2: Xoa's question and your reply to Xoa's question makes me realize I understand emuMMC/emunand on switch EVEN less well than I thought I did. He implies people are turning autorcm on and off? Does this mean you can use a sysnand alongside an emunand but that both them have to be on the same firmware? Then you only go online on sysnand? and you run emulators/
cheats/etc on emunand? I've read elsewhere in other threads that autorcm slash having the wrong number of fuses is a great way to get banned. I guess nintendo has stepped up their game since the 3ds days, where it used to be possible to have your sysnand and emunand on different firmwares at the same time. (nintendo hadn't invented fuses yet I guess).