UMA advantages: No dedicated video RAM needed (cost). All RAM is the same speed - you don't see a speed bump when exceeding the video unit's local RAM size, so you can make your scene's graphics as large as total RAM allows.
UMA disadvantage: On a standard mainboard, you can't put the RAM as close to the graphics chip as you can on a proprietary design (VGA card or console PCB), thus you can't clock the RAM as high - and you have all other RAM users (CPU and other bus master devices) eating from the same RAM's bandwidth.
As for the bandwidth, surely it has an impact ... but as far as gaming at REASONABLE resolutions and color depths (as seen on consoles) is concerned, frame rates are reasonably good with existing solutions.
Popular UMA solutions with SDRAM (like SiS 630 and 730 chipsets) are surprisingly fast when you keep the latter sentence in mind, the new DDR ones (SiS 740 and 650, as well as NVidia nForce) even more so. Sure, they're always two or three steps behind current high end graphics cards, but UMA is about providing an affordable solution to reasonable people, remember?
regards, Peter