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Differences between Multiprovider and Infoset

Multi-Provider
Multi-Provider is used to Union two or more data-targets, so that we can run query on different data-targets. It also helps us to execute parallel queries.
A Multi-Provider can consist of different combinations of the following Info-Providers: Info-Cube, Data-Store object, Info-Object, Info-Set, Virtual-Provider, and aggregation level.

Info-Sets
Info-Sets is used to joins two or more data targets. These joins only combine values that appear in both tables. In contrast to a union, joins form the intersection of the tables
A Info-Sets can consist of different combinations of the following Info-Providers: Info-Cube, Data-Store object and Info-Object.

Differeces Between DSO and InfoCube

The main difference in Reporting from Info cube and ODS/DSO is that InfoCube is meant for Multi-Dimensional reporting while ODS/DSO reporting is like 2 dimensional reporting.
There are many points which will clearly state that reporting from Info cube is far better than that from DSO.
Some major differences:

DSO
- Detailed form of data
- Flat file formate structure
- Two dimentional
- Performance is less as compared to cube
- Overwrite data functionality

InfoCube
- Summerised form of data
- Star schema
- 16 dimentional
- Additive data functionality
- Performance is better as compared to ods

InfoCube is prepared to visualize aggregation data and with the star schema relational tables, the data is accessed in better ways in terms of performance.

So if you use report in DSO performance is very slow compared to performance in InfoCubes.
Also chk this link:
http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/b04a79b4-bbea-2b10-da86-bf0fe933fe34&overridelayout=true