1.In a commercial network, there are few drawbacks -- the proxy in this setup is used to cache content on the Internet that has been previously accessed by another client, providing isolation from the Internet for internal hosts and thus improving security, And restrict access to the Internet -- or some content on the Internet -- from a corporate LAN. The downside of this setup, if any, is that it increases the complexity of making some services work by proxy (if that's what you're forced to do; Typically networks are designed to force some traffic only through proxies.
2. For personal use, many people use proxies to provide some form of anonymity on the Internet.
There are few advantages here, as delays are added in most cases and some content (good or bad) can be filtered out. In addition, trust is a major issue: proxy servers are able to record, capture, and track your activities, and if it's hosted by dishonest entities, the information you send through it could be used to cause harm.
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