I think big Rudin is meant for a more mature reader, and I think going from little Rudin to big Rudin can be quite a big step (but definitely doable if the reader has the patience).
Here at the University of Chicago, Royden's Real Analysis is used in our Honors Analysis course (for undergraduate freshmen and sophomores), and all entering sophomores are continuing from the use of Spivak's Calculus and some baby Rudin that professors decide to implement into our Honors Calculus course. This is what leads me to believe that it's an easier transition into graduate analysis, which begins with big Rudin.
It should be fairly easy to see that big Rudin's approach is intended for very mature mathematicians, whereas Royden is intended for those attempting to make a transition from undergraduate analysis to graduate analysis. Royden starts out with defining not the general measure, but Lebesgue measure, and not until Part 3 does he begin general measure theory. In his preface to the second edition, Royden writes "The treatment of material given here is quite standard in graduate courses of this sort, although Lebesgue measure and Lebesgue integration are treated in this book before the general theory of measure and integration. I have found this a happy pedagogical practice, since the student first becomes familiar with an important concrete case and then sees that much of what he has learned can be applied in very general situations."
On the other hand, Rudin decides to introduce the theory of general measure rather early instead of concentrating on Lebesgue measure. I'd say that nearly all of the content of Royden's Real Analysis is covered in the first half of Big Rudin. So, in conclusion, I think both are very nicely written texts, both with very good problems, but they are intended for different readers. I'd say that the smartest route one would take would be: Spivak --> baby Rudin --> Royden --> big Rudin.
rudinreader said:
I have glanced at the contents of Royden, and the con's are that there's too much time spent on Topology, given that Baby Rudin already cover's a lot, such as some nontrivial facts like a metric space is compact if and only if every infinity subset has a limit point in it.
Well, most of the topology covered in Royden is quite different from baby Rudin. With chapter titles such as "Metric Spaces", "Topological Spaces", and "Compact Spaces", it may look elementary, but it's not. The chapter "Metric Spaces", for example, includes such topics as subspaces, Baire category, Absolute G-deltas, and the Ascoli-Arzela Theorem.