I'll be the contrarian - I'll say Penny. He had 2x first team all NBAs. Hill only had 1x. Granted Hill had more total All NBAs though.
Penny was more of a unicorn than Grant was. 6'7" and could do it all and we had just come off a decade of Magic, seeing what a big PG could do.
I'm not sure if I believe my own argument, but you give me a 6'7" PG in Penny, there is a lot to work with there.
And I'll just say it, I think G Hill's potential is overrated.
Both these guys played during the time, imo, that the NBA was pretty weak. It was post-Bird/Magic and pre-the influx of talent we have now.
I can see it either way.
Let me defend Hill on that point a little on the all NBA issue. I think the league was stronger at than G in that period; Hill made second team in 96, 98, 99, and 00, and first team in 97. in 96, the first team all league were Scottie Pippen and Karl Malone. League may have been down, but those are 2 legit HOF guys. In 97, he actually beat out Scottie Pippen for first team. In 98-00, the first team were Duncan/Malone, Duncan/Malone, Duncan/Garnett. That's a hell of a tandem.
Penny made first team in 95 and 96. In 95, the second team, the guys he effectively beat out, were Gary Payton and Mitch Richmond. Payton was great, not at the level of the mentioned above, but great. Richmond? Meh
96, it was Payton and Stockton, a pretty strong pairing. In 97, he was third team, beaten out by Tim Hardaway and Jordan for first team, and Richmond and Payton for second. It's a minor point, but I would say Hill had tougher competition at the spot than Penny at G.
Anyway, even though one was nominally a and the other a PG, they are really two pretty similar players. Both were essentially PG for their teams. Penny listed at 6-7, Hill 6-8. Neither guy really a threat from 3.
I think the pro Penny argument is probably that Hill was probably more fully formed as a player, he came into the league at an older age, he maybe wasn't as hyper athletic as Penny; basically, the (very high) level he was at was basically the level he would peak at? Whereas Penny maybe had some more room to develop as a player? Flipside to that is, Hill's last healthy season, he averaged 26-6-5 on 49% shooting. That is a pretty monster player. And i wonder what his career looks like if spends some time with early Shaq.