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Bits have their own independent power source. Funnels require docking and recharging. As such bits are generally several orders of size larger than funnels and more susceptible to being shot down.
Fin Funnels are a miniturized version of the Bit technology. They rely on chemical propellant rather than being reactor fed (due to reduced reactor output during miniturization or to divert more power to the beam weapon or I-field?). The initial version of the Fin Funnels, as deployed on the Nu Gundam, has no means for refueling, which means the funnels will eventually run dry. The later version of the Fin Funnel system built onto the Hi Nu Gundam does have a refueling system.
There are actually only 2 types of mobile Newtype weaponary: Bits, and Funnels.
Funnels do not have a on-board generator, so in technical babble, they need to return to the "host" to recharge their batteries. Short operation time, but useful when you have multiple battles in quick succession, since the Funnels can recharge on the move mid-combat. Usually a mobile suit carries a good amount of Funnels and uses them in groups - send in #1-8, then while they recharge, throw out #9-16.
Bits have their own generator, so they do not need to "recharge" and stay out on the battlefield. Generally more powerful than Funnels (not that it matters much, since minovsky particles eat thru 99% of the armor in the UC verse), and have a longer operation time than Funnels, but once they run out of fuel, they can't be refueled so easily in battle. Generally Bits are larger and heavier than Funnels, so a MS normally doesn't carry that many at one time.
And the Nu Gundam's "Fin Funnels" are actually "Bits" in a technical sense, in that they have a on-board generator. Name's confusing, I know.
Biosensor is their way to have NT Hax0r POWAA when needed (Tomino had just done Aura Battler Dunbine afterall). The psycoframe is actually MORE detailed than the Biosensor ever was (it actually had a brief description in the movie and more so in technical manuals).
Biosensor was just Anaheim Electronics pulling a McGuyver on the Psycommu with spare parts and throwing it into the Zeta with a note to Camille that said "Take it for a spin. Good luck."
Bits have their own generator...and stay out on the battlefield. In ZZ, I remember Puru having that crown that could allow her to keep the funnels hovering in midair without her being in the cockpit. Was this ever expounded upon?