RAID does give better performance. Considering the fact that it boost HD performance 10-20% and lots of people on this board go to great lengths to get even a 5% increase in system performance it seems to be worth the trouble.
Adding RAM can increase system performance but all the RAM in the world won't make a program load faster from the hard drive. It also won't help in decompressing large installation files.
Performance benefits for RAM amounts above 128MB are only apparent when manipulating large image or video files.
Current cheap memory prices have allowed many to add system memory and tweak swap file usage to keep virtual memory usage down but my test show very little actual performance gain doing this. An example is Winstone Content Creation 2000 - a benchmark using image and video editing software running simultaneously, you would think the bench would like large amounts of memory and little swap file use, check these numbers
Abit SA6R/HP370
IBM 75GXP, 128MB - 31.2
IBM 75GXP, 256MB - 32.3
IBM 75GXP, 256MB - 32.1 - swap file tweaks
2 Quantum AS RAID 0, 128MB - 34.4
2 Quantum AS RAID 0, 256MB - 34.9
The decompressing of the test files in the benchmark go much faster with the RAID setup but this is not reflected in the score.
I realize than WS CC is not the last word is system performance but for me RAID gave a nice boost in overall system performance.