M8. Anyone who says select fire on the M8 is just wasting a point doesn't understand versatility. Having the option to switch to burst for long range is very handy. Also, the recoil patterns are totally different and the M8's is way more desirable. So long/ short range versatility when the Type just won't win and more manageable recoil. Only makes sense to me to go with the M8.
Don't bother with select fire. Stock and the suppressor is all you need on both guns.
To answer your question, I prefer the type because your less handicapped at close range while still being just as effective at mid-long.
Yeah, I always use stock & suppressor on AR's in this game. So I was actually committing 5 points to my M8A1 primary when you include the PGF wildcard as well. Then I suddenly thought 'is this really worth 5 points?'.
I don't enjoy burst fire (though I don't mind single-shot weapons), so for me it's either fully auto for the M8, or find an alternative weapon for my 7th custom class.
If you are worried about the M8 not performing close range, I would personally rather saving the Pcik 10 points of PGF and SF and using them on a pistol (Kap40 always a good close range choice).
While I agree that the M8 is weaker than the Type 25 in close range, neither are strong performers. Since the Type 25 is so much weaker at longer ranges than the M8, overall it seems like a loss. A pistol secondary would make more sense if you ever are forced into that type of an engagement.
And on top of it all, you sound like someone smart enough to understand that controlling engagements is half the battle. If you can play smart and keep guys at range, the M8 without select fire is going to be your best bet.