How should I balance Features and Installation Profile in a Code Driven Development workflow? Drupal Installation Profiles (in Drupal 7) are pretty powerful and can do just about anything a module can do. I'm using an Installation Profile along with Features to develop my site, keeping everything in code so I don't have to version my database.

Given the power of Installation Profiles, many of the things you can do in a Features module can also be done in an Installation Profile. E.g., creating content types, configuring permissions, etc. How should you go about deciding whether something belongs in an Installation Profile or in a Features module when using a Code Driven Development workflow in Drupal?
I've recently started using the Features module as a deployment system, as described in this presentation on features deployment. Assuming your using a similar setup with hook_update_N, features has one clear advantage that I'm aware of: it's aware of any changes that are not in code. This makes it a fair bit easier to track changes to (for example) views and content types, and also allows you to auto-generate the new features code to be committed and deployed.

I'm not overly familiar with installation profiles, but from the link you've provided it doesn't look like they provide this functionality. However it might be a case of use whichever suits you the best.

Edit: rethought response.