I can indeed confirm that this change creates a HUGE speed difference.
Using the code found at [1] with python2.5 and apache2 under Ubuntu,
changing the buffer size to 4096 improved the time needed to download
10MB from 15.5s to 1.78s, almost 9x faster. Repeat downloads of the same
file (meaning the server now has the file cached in memory), yield times
of 15.5s and 0.03s, a 500x improvement. When fetching from a server on
the local network, rather than from localhost, these times become 15.5s
and 0.9s in both cases, a 17x speedup. Real-world situations will likely
be a mix of these, however it is safe to say the speed improvement will
be substantial. Adding an option to adjust the buffer size would be very
welcome, though the default value should still be zero, to avoid the
issues already mentioned.

[1] - http://pastebin.ca/973578