I have used the method a fair bit in DB for the reasons Grog outlines. Also for colour sprite collision methods. I haven't noticed any major issues with speed, at least on the systems I have tested on.
I am getting a slight tearing effect on netbooks, with my first AppGameKit project. I imagine it is probably because I am having to draw everything to the main screen on the fly, and it can't quite keep up to speed. Reducing it down to 50 fps, it clears but then moves a little jerkily for my tastes.
It was a major advantage on Amiga systems many moons ago over the (supposedly) more powerful PC counterparts of the day. Any scrolling game in the early 90's tended to move better on the Amiga due to this double buffering technique.
The idea is fairly simple, draw your graphics on screen 1, and when done copy to screen 0 using the copy bitmap command. Rinse and repeat. You can use get image and paste image, but copy bitmap is way faster. You could also use this method for having multiple game windows and copying parts of the bitmap over.
http://s6.bitefight.org/c.php?uid=103081