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The Trek 1.2 is the "nicer" bike. While both are entry level road bikes, the 1.2 is spec'd with higher components and superior frame material. The major differences are in the fork material and drivetrain (shifters, derailleurs, etc...). The Defy 4 has a cro-moly steel fork. While this is not a intrinsically undesirable material, the 1.2 uses a carbon-fiber fork, far superior to steel. In regard to the drivetrain, the 1.2 is spec'd with components far higher-up in Shimano's product line then the Defy 4.
All is all, the Trek 1.2 is lighter, higher performance, and an all-around better bike then the Giant Defy 4.
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