I wasn't too impressed with either of them, to be honest, but I still thought "Ed Gein" was the better, grittier and much more realistic one by far. "Butcher" is essentially just a rehash of "Ed Gein" (at least as far as most of the story goes), but with a truckload of tangential characters and their relationships dumped on top of it. The focus is so all over the place that, at times, it doesn't even feel like an Ed Gein movie. Gein himself is also a much more interesting character in the 2000 movie. He doesn't really have any kind of personality in "Butcher". Plus, as much as I like Kane Hodder, I think he was a bit of a miscast here. To make matters worse, the last 20 minutes or so of "Butcher" are completely made up, with no relation to any real life events at all. And they're silly and melodramatic as hell.
So, yeah, if it has to be one of these two, go with "Ed Gein".
I haven't seen The Butcher of Plainfield in many years, but from what I remember about it I think this film is better. But Deranged (1974) is better than either one of them.