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The Electoral Reform Society seems to prefer this system to any other, but it has its drawbacks. On their website they give lists of advantages and disadvantages of various systems and so I have added a link to their page on STV.
To my mind the advantages outweigh the disadvantages, which could be mitigated by operating the system sensibly. For example, in a multi-member constituency ballot papers could be very large and there is a danger that candidates with names at the beginning of the alphabet would have a distinct advantage. This might be dealt with by presenting names in party lists, though with no facility for voting for a whole list with a single mark. People wishing to vote solely or mainly for a particular party would easily find the candidates they were interested in, while awkward cusses like me would see which ones to avoid.