KMZ is a compressed archive, so text editors and many scripts cannot read it directly. WKT is what spatial databases and GIS libraries accept as text. KMZ is at home in KML with its icons and overlay images in one file; WKT is the usual choice for writing a single geometry in a database or script.
Every format is read into plain GeoJSON features and written out from there, so coordinates, names and properties carry over wherever the target has a place for them. XML that declares custom entities is refused, and KMZ files are parsed without touching the network. The KML inside the KMZ is read; icons and overlay images in the archive are not carried over. WKT describes shapes only, so names and properties are left out; each feature is written on its own line.