As above; either should be fine, as long as you clean thoroughly, use weld-through primer on any lap welds, and paint / seam seal soon after welding.
- If you do flange it, your local Princess Auto / Harbor Freight type place should have cheap flanging pliers. They make the job a lot easier and cleaner-looking.
- The tightness of the patch against the original metal is VERY important, to prevent burn-through and ensure good adhesion / weld strength. If you flange it, I would suggest putting a sheet metal screw or two through each side of the patch (both pieces) to hold everything tight until you get the first few tack welds down. The screw holes are easily filled once you're done; low power, med-high wire speed.
- You may want to add a few sides to your hole / patch, even if it seems to make the shape more complex. Cutting, flanging and welding skinny, acute-angled points (without blowing through) is much more difficult than dealing with 90 deg. angles. I would suggest something more like the following (rotten ASCI art follows.)
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