Both methods are acceptable, but remember that “hidden” images still take up memory (and more importantly, texture memory). So, if you have dozens of images that you’re swapping in and out visually (using alpha=0 or isVisible=false), remember that they’re still being regarded in the display hierarchy and in texture memory.
On the other hand, if you create and destroy images, and do this process a considerable number of times in a time-critical step, you might see a small performance skip, especially if the images are large in file size.
Hope this helps,
Brent