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They give more power and quicker start ups. supposedly. I have installed the Ignitor 2 and flamthrower 2 coil. I haven't felt much of a difference, but im sure there is.
It adds maybe 1 or 2 ponies of HP, so that is not the reason for the electronic ignition. It is just simply more reliable and accurate, and never wears out as compared to points.
yes, it turns your old point distributor into an electric. you will most likely never change points again, you will start a lot easier, and it will greatly improve idle and mostly eliminate false starts/ help hesitation.