"There are prominent examples, for instance: Project Gotham Racing 3, one of the first games for the Xbox 360. There the load times have been very long; those are going to get reduced immensely. Recent games are already optimized; there the gain is relatively small."
All he says is that older games will benefit more from installs because they are less optimized thus having longer load times than newer titles. So in newer games the install gains will obviously be less and less noticable. Which is actually a good thing because that means that newer games are seeing shorter load times to begin with.
Common sense would tell you that games streaming off the HDD is faster than disk read speed.
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