LED, those USB card readers have tiny little USB-IDE controllers inside - just like USB CDRW drives and those tiny USB HDDs do.Another reason for making card readers USB attached is USB's hot plug capability, something that just isn't there when you run a CF drive directly on an IDE port.
Of course USB 1.x with its real life maximum throughput of about 800 KB/s bottlenecks even the slowest CF drives. Your test neatly shows this - your USB 1.x test run (center window) hit the ceiling at 650 KB/s, although your CF drive is capable or about 5 MB/s read, 2 MB/s write (left window) - which makes it a pretty fast one btw. The data shown in the right window there cannot possibly have come from an USB 1.x device, since USB 1.x has a maximum _raw_ bandwidth of 12 Mbit/s or 1.5 MByte/s. No way to get 2 MByte/s actual data transfer across it.
CF-on-IDE is something very frequently done in embedded computing btw.