at a guess I would say that the second install probably uncompress some of the files which would speed things up a bit...

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I'm almost certain it doesn't do anything for digital installs, the whole reason to install the game to the stick from retail versions is because the stick is just plain faster, just like having it on a cart (oh man at the start of the handheld gen people would have gone crazy over hearing that the UMD slowed things down) 

So yeah I don't think it makes a bit of difference since digital games are already faster, you can try it if you want though.

I don't think Peace Walker actually fit the UMDs 1.8 gig limit space.  I mean every enemy has no voice which is a bit odd.  I'm guessing they had to compress the audio down a lot to the point where it had to be decompressed before use which leads to the install (radio doesn't have voice without install).

Well, I guess it's a case by case basis.  For Peacewalker, if you don't install, you actually lose some features.  I didn't notice much of a difference with Hot Shots Tennis.  It seems to load a little slower but that may be all in my head.  Valkyria Chronicles has an install but the online manual (and probably the real manual) states to ignore the install option if it's the PSN version.

Another thing that I just found out: I can't use custom soundtracks in crazy taxi!  I downloaded all of those Bad Religion/Offspring songs (and the entire Tony Hawk 2 soundtrack) for nothing!  Shoulda gone with the UMD version.