This is a great question, and I really appreciate the responses you've received so far.  To your initial question of "what transformation would one use and why?" and looking at your screenshot, in my opinion, I would advise the students to not use the first option which results in accuracy to 4 meters, but instead to use one of choices below it with accuracy to 2 meters.  You should look at the additional descriptions to pick the best one of the remaining 6.  I have seen QGIS put the least accurate choice at the top before, and often people will just choose the top (default) option, so I think this is problematic.  

QGIS handles coordinate systems, projections, re-projections, etc. quite differently than ArcGIS, and for the most part, I prefer QGIS overall.  One thing that bothers me though is when you open the CRS window, all the Predefined CRS options are expanded out by default, and it takes forever to scroll through that list.  If they were not expanded, it would be much simpler to me.  Really the Filter is the only way to find what you need, but I would prefer to drill-down like with ArcGIS.

Thanks again,