Mysql – what’s difference between sql_log_bin and log_bin in MySQL？

Statement-Based Replication (SBR) will replicate SQL Statements. It is easier to read using mysqlbinlog dump program.

Row based replication (RBR) will replicate actual data changes. Binary logs and relay logs will grow much faster than SBR. You also cannot identify the SQL that generated the changes.
(Please read updated information for MySQL 5.6.2. below)

Here is a more comprehensive pros-and-cons list : http://www.databasejournal.com/features/mysql/article.php/3922266/Comparing-MySQL-Statement-Based-and-Row-Based-Replication.htm

MySQL will allow both types of statement/row formats in its binary logs. I recommend STATEMENT based. Default binary log format is MIXED which is OK.

Since you are using replicate-ignore-db and replicate-do-db, I would trust Statement-Based Replication.

Update for MySQL 5.6.2:

Introduced in MySQL 5.6.2 the binlog_rows_query_log_events system variable causes a MySQL 5.6.2 or later server to write informational log events such as row query log events into its binary log. So we can identify the SQL that generated the changes.

Reference: 17.1.4.4 Binary Log Options and Variables

there are not Masters/Slaves in Cluster, the nodes are all active. That Master label is an internal thing and you don't have to take care about it.

@Tom: are you sure you know mysql cluster? To be a specific use case doesn't mean to be "strange". To be more precise, MySQL Cluster gives the best when you have a huge amount of small transactions, since is a parallel database. If you have a small number of big transactions, if not for you. But if you have small transactions you can distribute them between the nodes.

Massimo