To be absolutely truthful, Chris, I haven't seen a detailed explanation of how an why it works, I just posted it on the basis that if it's good enough for the Iles brothers, it's good enough for me!
That said, a couple of things do occur. A very slight crown will reduce the chances of a wheel corner nicking a long edge (happened to me once regrinding a drawknife on the Tormek - boy, did that nick take some dressing out!). Also, it means the grinding action is concentrated nearer the middle of the wheel on a small area, which, because you're traversing the tool, comes into contact and then out again quite quickly. Thus, the bit that's been in contact (and heated) gets a chance to cool again before it's next contact, which is also brief.
You'd think this would slow the overall grinding process down, but it doesn't seem to. It's as if the small contact area does the work that the whole wheel width would do if in contact. The small area cuts a bit deeper than if all the particles across the whole wheel width were in contact, each cutting shallow, rather like a plough iron will take a thicker shaving than a try plane iron does in facing a board.
Sorry that's all a bit conjectural. As I say, not sure in detail exactly why it works, but I know it does.