Delete or cancel order?

What is the difference between canceling and deleting an order? When an order is deleted is any shipping information deleted?

Cancelling and order marks the order as cancelled and replaces the items sold back into stock which were decremented when the order was created. You can still see the order in the system marked as Cancelled.
Deleting the order marks the order as Deleted and then you can no longer see the order in the system although it not actually deleted from the database.

During the checkout process the address data is selected from existing records or stored as a new record in the customers addresses list when the order is created. Then the selected address is copied into the order record. Deleting the order does not delete the customers address info from their list.