Melamine plywood is resistant to moisture but not completely waterproof. The melamine coating provides a degree of protection against water and spills, making it suitable for areas with occasional moisture exposure, like kitchens and bathrooms. However, prolonged exposure to water or high humidity can still lead to issues such as swelling or delamination. For environments with constant or excessive moisture, it's advisable to use materials specifically designed to be fully waterproof.

Melamine is better for budget-conscious projects where ease of maintenance, durability, and a variety of prefinished options are important. It’s ideal for environments where moisture resistance and a low-maintenance surface are needed. Wood is better for projects where natural beauty, long-term durability, and repairability are priorities. It is ideal for high-end furniture and cabinetry where aesthetics and the ability to refinish are valued.

Your choice between melamine and wood will depend on factors like budget, desired appearance, expected wear and tear, and maintenance preferences.