The Menu Navigation List view type allows the builder to use a SharePoint list to determine the items to be displayed by the Menu Navigation, and how each item is to be displayed. When this view type is selected, the builder makes selections on later wizard pages to identify the sites and lists to be referenced by the Menu Navigation. The underlying list can be located in the current site, in another site identified by the builder, or identified in a central view.
A benefit to using this view type is that it is tied to a list, allowing for changes to be made by editing a list instead of performing the update via a web part component. The disadvantage is that the pages must be created by the builder and accurately reflect the page structure dictated by the list. If they do not match, the navigation will send users to pages that do not exist.