Can you provide a concise distinction between anonymous method and lambda expressions?

Consider the following queries:

Customers.Where(delegate(Customers c) { return c.City == "London";}); // delegate
Customers.Where(c => c.City == "London"); // lambda

The first generates:

SELECT [t0].[CustomerID], [t0].[CompanyName], [t0].[ContactName], [t0].[ContactTitle], [t0].[Address], [t0].[City], [t0].[Region], [t0].[PostalCode], [t0].[Country], [t0].[Phone], [t0].[Fax]
    FROM [Customers] AS [t0]

Whereas the second generates:

SELECT [t0].[CustomerID], [t0].[CompanyName], [t0].[ContactName], [t0].[ContactTitle], [t0].[Address], [t0].[City], [t0].[Region], [t0].[PostalCode], [t0].[Country], [t0].[Phone], [t0].[Fax]
    FROM [Customers] AS [t0]
    WHERE [t0].[City] = @p0

The compiler is able to determine that the lambda expression is a simple single-line expression which can be retained as an expression tree, whereas the anonymous delegate is not a lambda expression and thus not wrappable as an Expression<Func<T>>. As a result in the first case, the best match for the Where extension method is the one that extends IEnumerable rather than the IQueryable version which requires an Expression<Func<T, bool>>.