My opinion is based strictly off of a machinist background and not on carrying a gun for a living so take it for what it is worth.
Billet is made through a forging process, that's why you end up with a big block of grain free metal. When the manufacturer takes delivery of said chunk of billet they will saw of individual chunks of billet to fit in their machining centers.
I am of the opinion that you start getting "Chunkier" recievers when you get into billet simply out of aesthetics and lower run times involved to leave it more squared.
Strength wise, I don't think you are giving up much if any at all when you start looking at a "Quality" billet receiver. Theoretically you'll actually end up with a stronger receiver by going the billet route. The counter to that however is that the original billet has to be quality and preferably from the outside edges of the original chunk.
This is not necessarily true. In a forging, the "grain" or lay of the forging is controllable to include not having one at all. Most stock has a uniform grain, depending on its manufacture (extrusion, bar, etc). Also, forgings can be manufactured to a rough shape, minimizing machine time. The down side is the machining requires jigs and fixturing to hold the forgings' unusual shapes. It is usually more difficult to set up and load, therefore leading to more scrapped pieces.
Billet on the other hand, can be dropped into a vise without specialized fixturing because you can buy it in blocks. The entire top and most of periphery can be machined on a simple 3 axis CNC mill in one operation. That's probably why there has been a huge influx of companies making billet receivers to the market. To be fair, you have total control over billet because you can machine it to be aesthetically pleasing or useful, as the machinist/programmer sees fit. Take a Noveske's excellent flared magwell for example, you can choose to do that using billet. The option is not there on a forging because there is not enough excess stock. The same with their trigger guards. The forging has no provision for a trigger guard.
If you had to make a billet version of the forging, the billet version would have to be thicker in places to accommodate for it's grain structure. So, to answer Riafdnal's question, yes. But using billet, you could remove the excess stock that the forging may carry, sssoooo....
Which is better? As long as all the critical dimensions are there, I'm of the opinion it doesn't matter. Now if you're talking material.... Ugh!