Hierarchical REST API vs Normalized REST API

First, I'd like to explain the meanings of Hierarchical REST API and Normalized REST API that I made up.

• Hierarchical REST API
  • Request URL: Can use a hierarchical structure with multiple types of contents. (e.g. http://www.example.com/customers/12345/orders)
  • Response body: Can contains all of the requested contents without any omits, including other related data types (e.g. a customer contains an order)
    • e.g. http://www.example.com/customers/12345

{
  "name": "John Doe",
  "orders": [{
      "id": 1,
      "price": 10,
      "delivered": true
    }, {
      "id": 2,
      "price": 11,
      "delivered": false
    }
  ]
}

• Normalized REST API
  • Request URL: Hierarchical structure from URL is forbidden.
    • NOT OK
      • http://www.example.com/customers/12345/orders
      • http://www.example.com/customers/12345/orders/1
      • http://www.example.com/customers/12345/orders?accepted=true
    • OK
      • http://www.example.com/customers
      • http://www.example.com/customers?firstName=John
      • http://www.example.com/customers/12345
      • http://www.example.com/orders/1
  • Response body: Contains all contents of the requested content type. In case of other types are related, only return IDs of it.
    • e.g. http://www.example.com/customers/12345

{
  "name": "John Doe",
  "orderIds": [1, 2]
}

I think both methods have their own merits and drawbacks

• Hierarchical REST API
  • Pros
    • Can obtain all required types of content in a single request (e.g. customers, orders, addresses from http://www.example.com/customers/12345)
  • Cons
    • Responses can be exponentially huge and slow if the hierarchy of the data is deep
    • Circular reference can happen
    • Data duplication (e.g. Results from both http://www.example.com/customers/12345 and http://www.example.com/stores/1 can contain the same order data)
• Normalized REST API
  • Pros
    • Faster responses (Small payload, no or little joins from data sources, less business logic)
    • No data duplication via normalization
  • Cons
    • Require multiple requests if you need multiple types of content (e.g. to retrieve all orders from a certain customer, at least 2 requests are required from the client)

My questions are:

• Is there terminology for the Hierarchical REST API and Normalized REST API?
• Which one is more fit for the REST API guideline? I'm also open to other options.