A grand auditorium guitar, at least the way Taylor makes them, is as large as a dreadnought but with a tighter waist. Playability is the same but, as Jimklein already mentioned, dreadnoughts are designed to be used with medium gauge strings and grand auditorium guitars are designed for light gauge strings. Some people find dreadnoughts less comfortable to hold while seated. Since the dreadnought has more soundboard area, it should be slightly louder. A grand auditorium should reproduce the higher frequencies better than a dreadnought. Dreadnoughts can be expected to emphasize lower frequencies.
People have preconceived notions as to which body type is best suited for one style of playing over another but there are fingerstylists that use dreadnoughts and strummers that use grand auditoriums. What determines which guitar is best suited for your playing style depends on which body type appeals to you the most, not what other people say.
From Taylor's web site:
Grand Auditorium
Body Width...........16 Inches
Body Depth............4 5/8 Inches
Body Length.........20 Inches
Overall Length......41 Inches
Dreadnought
Body Width...........16 Inches
Body Depth............4 5/8 Inches
Body Length.........20 Inches
Overall Length......41 Inches
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