Right, but you're talking about a Hero, which like my G1 has much lower RAM.
Let's assume that you're in a situation like me, and the phone is constantly low on RAM (under 40MB, give or take 10MB). Whether you use task killer apps, or a rebooter apps (which pretty much kills off everything), or just Android on it's own, they will all do the same job of freeing up RAM to load your next app. The speed increase you're seeing from fast reboot is because you're just doing the task of freeing up memory for Android in advance. Without "fast rebooting" Android may have to kill off a load of stuff to free up memory before starting your next app. This takes time, but then so does fast rebooting. Is doing a fast reboot then loading your app really faster than just loading your app immediately? If you do a fast reboot you've essentially killed off a load of stuff just like a task killer would.
BUT, what would happen if there's enough RAM to keep that app loaded? There may be on your Hero, it just depends on your phone and what other stuff you have running. If you just go straight back into the app, it should appear instantly if you have enough RAM. But, if you kill off the app (either by fast rebooting or with a task killer) and reload it you'll notice it takes longer to load. For small apps the difference is hardly noticeable. But on bigger apps it's the difference between 10 seconds and half a second. So in this scenario you're just slowing down the loading of your app by using fast reboot or a task killer.
What happens if you have a newer phone with loads of RAM? Well in that case the phone is capable of keeping a load of apps in memory, allowing you to access them all very quickly. If you kill them all off then you're just forcing them all to reload slowly when they're next needed.
And really that's where Task Killers do have a purpose. There are some apps that do run frequently, use a ton of memory and CPU and battery, and serve no purpose at that time. For example, I have ShopSavvy installed, which likes to run two processes, using about 25% of my free RAM between them, turn on the GPS, and sit there running for several minutes. I assume it's to keep its known location up to date, but I don't want it to do that unless I'm out shopping and actually want to scan stuff. In this kind of scenario, a Task Killer is good. But that's because this process is just a useless waste of resources at that point in time.
Task Killers require you to have a reasonable amount of knowledge about each task you run, and Android. Kill off the wrong thing and things will start messing up, or the process you kill off will just be restarted automatically shortly after killing it (so you're just wasting CPU time and battery killing it off).
Fast Reboot kills off all of the core processes. That's really dangerous in my opinion. Allow me to quote some of the comments from Fast Reboot:
by Tommy the 6/13/2010
Crashes the Evo 4G then you end up pressing more dialogs then if you would of simply power off. Uninstalling
by Nik the 6/4/2010
Great idea, bad design. Messes up my home screen, phone refuses to make calls until reset by power button. HTC hero cdma (sprint)
by Ahron the 6/1/2010
DO NOT INSTALL! WILL BREAK ALARMS, SYNC, GOOGLE VOCE, ETC
by AndCycle the 5/23/2010
Nice try, killed all service too.
by James the 5/13/2010
Messes some things up.....stop being lazy and just reboot your phone, you shouldnt need this app
by C.R. the 5/13/2010
Good, but buggy. Resets my live wallpaper. Also closes volume locker. Need and exception list. Otherwise great! Droid.
by Scott the 5/3/2010
Htc hero - after fast reboot txts (handcent) wont recieve txts.. have to turn phone on/off.. defeating purpose of reboot
by boomshankerx the 4/25/2010
more stars if it would properly restart USB service on milestone. Otherwise seems to work great.
by David the 4/24/2010
Garbage. Doesn't restart apps that should restart with a reboot. Not only is it not a "reboot," but you have to do a real one after you run it
by M the 4/24/2010
Kills my network every time MotoDroid. Uninstalled.
by G?ran the 4/23/2010
Does not work on HTC Hero. Home screen is not restarted.
From these comments, you can see a clear picture that Fast Reboot kills of stuff that it shouldn't, and doesn't restart them. Android, however, DOES keep a record of what it kills off, and will restart services when more memory is freed up (i.e. when you exit your app). Sure, that means it may have to kill that service off again next time you run something, but then your task killer would have to do that anyway, so you don't lose anything. But in the meantime at least your phone is working properly and being reliable.