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Actually no one is really better than the other. Both should play fine on the M6, provided you do not use 'advanced' functions such ad B-frames, quarterpixels and stuff like that.
And as for the smaller files part, divx is not better either, they are roughly both as efficient, it will depend on the video I guess, and the bitrate/quality level you asked for. There is no general rule.
That said, my personal preference goes to xvid, just because it's open-source and divx is commercial... And i never had problems with it (not that I use the video functionality that much though).
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