I would think that the benefit over FastCGI only comes in a few cases -- if you have _lots_ of CGIs on the system that only get called rarely, then there isn't the memory overhead for each individual script (and all of its included modules, etc.)
It's possible that there might also be a benefit to hosting companies in terms of supporting it ... like when a script starts going wonky and you have to explain how they've not bothered initializing their variables to zero / empty / whatever, or something else is sticking around and not getting cleaned up. (memory leaks, accidental closures, etc.)
As for the performance benefit over pure CGI -- I'm guessing that it only comes if the cost of reinitializing the interpreter is cheaper than loading in the first place -- if they can get the reinitializing cost down, then they'll improve performance of systems using this module.
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