Faster load times

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It combines multiple JS/CSS files into one, hence reducing the amount of requests.
I'm guessing it also removes whitespace and things of that nature
 
How about encode all your little graphics as base66, embed in the HTML page, and decode on the client side. 50 bullets = 50 transfers normally, but only a small amount of code, and no 50 xfers. :-)
 
The gzip compression could make a difference in load time. Since the files are compresses, the transfer is must faster between server and client.

Also, if your site uses multiple css files then merging them into one CSS file can dramatically increase performance. This is especially noticeable when your site is receiving a good amount of traffic.
 
If you have a lot of database queries then that will also slow down your server significantly. If thats the case then you might want to consider caching some of your pages, especially if they aren't updating every second. This will drastically speed up your loading times by cutting down on all the mysql queries and therefore using less ram. Caching is really easy to do and you can learn it in about an hour.
 
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