I find that while cloth nappies tend to make me itchier if I spend too long in them when wet I don't get a full rash, whereas disposables give me more full rashes that appear quickly without any itching/burning sensations as a warning first. This is one of the reasons I prefer cloth.
I rarely have rashes with cloth diapers. The important part to remember is to wash them very well in hot water to sterilize them. Hanging in the sunlight helps to disinfect them as well.