Yea, exactly. It can help in some extreme situations but those are the exception, not the rule.
I disagree. While I don't have any numbers to back my statement up (and I'm not going to fragment the crap out of my hard drive), given a magnetic disk, fragmentation can make for a huge difference on access times and in-order transfer rates.
Think about the queuing algorithm in the HDD Controller. If the data is always on the other side of the disc (or God-forbid, on a separate platter) you have to attempt to fill requests on the path to the specific sector. If a request isn't on that path, you then have to generate a completely new request.
The head is flying all around the platters trying to find the data in a timely, yet efficient manner. Access times with a highly fragmented HDD are through the roof.
Furthermore, the in order transfer rates would decrease as well because nothing is "in-order" anymore. Of course, given a sufficiently large HDD cache, you may only see the access time penalty as the HDD will buffer all the data it receives to the cache before a burst transfer.
-Kevin
Edit: I would; however, like to say that with SSD, fragmentation has 0 affect on performance. In fact, due to wear leveling algorithms, your HDD is probably fragmented as much as possible.