In general, the more poreous the material, the less likely I'll wet-sand. Wet-sanding is preferable only because it keeps the dust out from in between the grits (reducing the effectiveness of the paper/block). But in situations with poreous materials like bondo, the extra moisture will cause all sorts of problems. Mainly it gunks up the bondo and roughs up the finish. Wet-sanding will cause you to be faster, but yields in more issues with poreous materials.
Just depends on what you'd like.