This is one of the first things I did with my very first TiVo, which is still chugging away 4 years later in the loungeroom.
In short, no it does not do anything that I can see. Some software guys may know if it takes a bit of load off the CPU and/or disk swapping for applications but I'm not that way inclined.
As far as I know it was believed to help in the same way a cachecard is claimed to do but has since been dismissed.
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