They both do similar things, I think that crossbrowsertesting fails when it comes to testing localhost though. I don't think you can just run a rails app by pointing to where the files are, since rails runs on its own test server activated through the terminal.
If you are only testing basic html/css then it will work fine
Same here, this is my default for cross browser testing. Setting up virtual machines was somewhat of a headache, and the speed at which I can test different browsers is awesome. They also allow localhost to tunnel into the site so you can test your builds extremely quickly. Highly recommend!