As John already pointed out: Using "pdflatex" this is also possible with LaTeX (well, both use PDFTeX behind the scenes).
That was what I meant of course. I always avoided DVI by using PdfTeX.
Well, the question is how much you want to change; I think one can (in both cases) live with the defaults provided (plus some minor changes). The defaults in LaTeX are arguably better, ConTeXt on the other hand allows changes much easier. I have also the feeling that ConTeXt's figure placement is better - at least I had so far not as much problems as with LaTeX. (In LaTeX frequently all figures are collected at the very end of the document -- or in between when one does a \clearpage.)
Exactly these were my considerations. The topic this time forces me to include many graphics and placement with LaTeX often depends on either luck or browsing through many obscure packages that try to alleviate the situation. On the other hand does the ConTeXt default look rather "bare-bones" and I'm afraid that I'll lose myself in micro- and macro-tweaking.
One reason to favour LaTeX is that many publishing houses are accepting LaTeX submission, while for ConTeXt less so. This is maybe less a problem for BSc/MSc theses, but for PhD theses, where one frequently includes some (own, published) papers, this means extra work. Having said that, I have written my diploma (~ MSc) thesis in physics using ConTeXt and I do plan to do so for my PhD as well.
That will be less of an issue for me (The paper that will be published based also on my findings is formatted in Word(TM)).
I can send you the environment I used;ยน the layout could probably done better, but I think (hope) that it looks quite ok; I used Latin Modern/Computer Modern at 12pt on A4. (For my PhD theses I'll use probably use octavo/A5.)
It looks quite nice. At first the baselines seemed a bit fuzzy in acroread but that was an illusion I guess. I you sent me your thing to have a peek at that would surely be very instructive. Go ahead, please! - Tobias