If you are referring to the middle (inside) of the HD disc as the store, your example is incorrect. The more frequently used files will run faster if placed further toward the outside of the disc as that is where the disc turns at a faster speed. No, I did not just say that defragmenting your hard-drive will place all your files toward the outside of the disc, I know it doesn't. However defragmenting tools such as O&O will recognize which files are used more frequently taking them out of their current cluster placing them toward the outside of the disc while still packing them in close with the rest of the files.
So your description was almost correct, if I interpreted it correctly.
Here's an article on my site
Impact of Disk Fragmentation
http://home.comcast.net/~animl/articles/impactoffrag.htmWOT to follow.
It's not just that. There are many reasons to defrag. You have large partial files, some parts of that file are placed in a parking spot in the middle and some parts of it in a spot towards the end,...the drive still has to get all the pieces from where ever they are stored before presenting a whole file. And as you say when they are right next to each other as some defraggers will do things happen faster.
Imagine this, if every frame of a movie was a file, it would run MUCH MUCH smoother if the drive was defragged, then if it was fragmented, simply because the head of the HD isn't having to move all over the place to find files. Every movement creates latency time. Heavily fragmented drives can ware out the mechanical parts of the HD. When it has to do all that thrashing work for many fragmented files you will have issues,... period.
Watch the HD activity (the light on your computer) on a fragmented drive, then watch it on a defragged drive,...almost no disk activity, means the head and arm is having to move less, less movement less ware, anmd less latency... anything that moves wares out from friction.
So it's over-rated compared to what>? Office = apples, gaming = oranges
Sure defragging often may be over-rated in an office environment, or simple desktop operations. But when it's constantly calling on files such as in a game we're in a completely different world.
Does it take longer to hand someone a whole piece of paper at once, OR does it take longer to pick up several pieces of the same paper which are located all over the room before handing it all to someone?
Drives can become so fragmented they will barely work at all, in severe cases it will get to a point where it can't even be defragged.
I worked on a friends drive last week, after 1.5 years of never defragging, it was 70% red. It took 6 defragging sessions to get it half way done, because it couldn't defrag it all in one session. It just couldn't deal with it, and that was using Diskeeper. In the end defrag had to be run 16 times before it finally got it right again. All he can talk about is how much it sped up his computer, very noticeable difference with the human eye.
THE biggest bottleneck of ALL computers and the most neglected is the HD. Your system can only be as fast as the HD can present files to memory. When it's fragmented the bottleneck gets bigger, OR in other words machine latency becomes longer time. 150-350ms delays\glitches will irritate you in a game.
Why do you think some suggest turning off using other people's skins to stop glitches? It's not just because of the video card...IMO
Drives you do NOT want to defrag are ones that hold large movies or music files. This is why I keep media (larger files) on separate drives, and games and OS get their own drives. In fact, I run my games off a 8g Fat32 drive because Fat32 is faster on smaller drives, NTFS is faster on larger drives. And NTFS files have to go through more BS when pulled up,..decompessions, encryptions,...etc before they hit memory. NTFS is more secure, and a better filing system....I use it for other things. If you use NTFS, do not compress your files for a game to save space, you just add opening time.
If you only gain 2% here, and 5% there, and you tweak many items it adds up to 60% performance gains. 1-5 tweaks usually doesn't yield much, 10 tweaks it starts adding up. If defragging the HD gains me 5-20% I am happy.
In a nut shell, you can't ware a HD out by defragging, you can ware it out if you don't ever, eventually it will kill it.
Sorry for the WOT, I guess HDs are one of my pet peeves.

Animl