I get a bit confused about how cryo works sometimes, when I look at troop transports. There doesn't seem to be a readiness issue using cryo transport for troops. For troops, cryo transport is BETTER for morale, and takes up more hull space.
I would like to know if the extra life support for transporting troops can help in various unexpected overcrowding issues.
Cryo drop pods essentially keep troops frozen (no morale penalty) but require more space and cost more. It is an improved version of the basic drop pod that has morale penalty. They are both meant for assault (as in, landing on a hostile planet/ship while being shot at).
Troop *transport* is entirely different as it is not intended for planetary invasion (unless you achieve space superiority, destroying all enemy ships and PDCs), as it can take days or weeks to actually unload a sizable amount of troops. It is mainly used for moving troops around in safe locations.
Think of them as transport ships vs landing craft in WWII. Troops can stay indefinitely on a transport ship (with living accommodations, training areas, recreational space, mass halls etc.), but they won't be happy to stay crammed in a landing craft for more than a few hours. Cryo drop pods in this case would be a landing craft that keeps soldiers hibernated until needed.