Story points and ideal days are both techniques for estimating the size of work in agile software development. Story points are relative units that measure size, while ideal days estimate the time to complete a task if there were no interruptions. Velocity, the rate at which a team completes points, helps correct estimation errors over time. While ideal days are initially easier to estimate, story points drive better collaboration and don't decay over time. The document discusses factors to consider when choosing an estimation approach.