I will try to answer your question but we are starting to get into an area that I do not have a good in depth knowledge.
It is my understanding that a 10/100 hub has a maximum total bandwidth of 100 MBs. The hub must share this bandwidth with all clients. A switch, on the other hand, has the full bandwidth available for every client. In other words, a hub only provides a single pipeline that must be shared by all clients. The switch provides a separate and dedicated pipeline to each client. This implies to me that the switch has greater thru-put ability if multiple users are requesting data be transfered simultaneously. This is only my understanding of the theory so please do not take this to the bank.
The above being said, I also believe there is a much more practicle side to this that is not necessarily consistent with my purchase decision. Most of the work our network does is to transfer data to/from the cable modem. The maximum thru-put of the cable modem, even at maximum speed, is an order of magnitude less than 100 MBs. Therfore, I am sure that a hub will never even be stressed handling these loads. I believe that the real advantage of a switch becomes apparent when files are transfered between machines. It also seems logical that this advantage is only an advantage if the network is busy transfering data to/from multiple clients simultaneously. In my home network this is rarely the case. Even if this does occur, the time to transfer files is so short that there does not seem anything practicle to be gained in a small home network by using a switch.
So now you would probably ask; why did I spend almost $70.00 more for the router with the built in switch when I already had an 8 port 10/100 hub? I cannot give you a single good reason. My only explanation is that I am an engineer that has been involved with nuclear power for 31 years. I always overbuild all my personal projects. Why? Probably for the same reason a dog licks its balls, it can. I also know that everything I overbuild usually lasts forever, meets all my expectations for what it should do, and never fails. Cost justifiable? No way! Am I satisified with how well my system works? I certainly am.
Hope this helps and hope even more that noyhing I just explained in incorrect.