Which do you prefer reading about? Why or why not? I tend to lean more towards canon, at least when it comes to SessKag.

I lean cannon, but I have found AUs that I really love. I think I prefer cannon or historical AUs because I like the historical aspect of the story. In general I think that's one of the things that attracted me to the Inuyahsa comics in the first place-- I like historical fiction.

Canon, unless the characters are vastly different in personality without a reason for said change. There are a lot of different things that go into it but if it's modern times then I'd like it to be post canon rather then AU.

I do read AU on occasion, but few and far between.

Personally, I love AUs just 'cause it feels like the author has more room to put the characters in different situations and challenge themselves with how that certain character reacts to it.

However, it does have its moments when it gets a tad bit cliche or overly cringy. But I still appreciate them nevertheless. A canon story has to be super intriguing/ unique for me to read it because of the same cliches and cringy moments that saturates the fanfic category sometimes.

I like AU more because there is a wider scope for diversity and character development.

Coffee or tea...both isn't a wrong answer. It's easy to find an AU fic with outlandish settings (I'm sure I've seen some cyborg or pirate fics out there) because the author enjoys such genres and would like to immerse their characters into that world.
Finding a really good canon fic is like striking a jackpot especially when you can see that the author took effort in making some background research prior to writing the story, aside from the basic storytelling elements. I agree with Moonlight Silk and Oki, there is more flexibility to AU fics.
I read both, I don't care if Sesshoumaru is a transvestite in a post-apocalyptic world filled with mutant roaches, if the writing is convincing, I will dig it.

I don't mind canon or AU. It's the skill of the author that gets me to read their fic.
I've only seen a handful of really good AUs and canon stories. And I read a lot. There's a reason why peeps read Forthy, RosieB, Tallymark etc. Their fics are fandom favs because they're well written, with great spelling, punctuation, etc aside from engaging imaginative plots, and fab characterisation. It doesn't matter if their stuff was canon or AU. It's just that good, you want to read it anyway.

~ Pyre

Generally I prefer to write canon with them unless doing a crossover. The exception might be for outlandish reasons, such as say putting them in outer space in a futuristic Sci-Fi setting, etc.

I love both, as long as Sesskag is in it!!! Though CU fics annoy me sometimes 'cause they're not historically accurate. How many CU fics that feature "modern bed" while in fact, Japanese sleep on futon? Well, like I said, it annoys me sometimes, but also makes me laugh