The main performance difference that you'll notice between a conventional HDD & SSD is the seek time,for SSD it's like 0.1ms (milliseconds) but for a 7200RPM HDD it's like 14ms or so.
even setting up RAID 0 with 7200RPM HDD's & short stroking them gets the seek time down to 7.6ms or so but even that's very slow compared to 0.1ms of an SSD.
Seek Time is the time required by the read/wrote Head to move to the correct place for accessing data from Media.
since HDD's have moving parts the time required is more.
compared to SSD which have flash memories & works on the principal of REGISTERS (table containing address of data) thus the low seek time.
currently i'm using intel X25-V 40GB SSD on my 3 year old pavilion laptop & it beats today's generations laptops in seek times,it even beats my quad core AMD Desktop.
you'll see about 60% improvement in startup,shutdown times.
the improvement in battery life would be around 20% but most importantly you can use it on lap now because it will not generate heat..
i suppose they suggested not to use XP with SSD is because of TRIM Support,see unlike HDD's ,SSD's doesn't need defragmentation.
The effect of Defragmentation on SSD is the exact opposite of the HDD.
so,win 7 has the ability to detect SSD & so it turns off all the services like defragmentation on it's own.
I don't see a reason why formatting a SSD will harm it.
the only difference you'll see is seek times i.e quick response from the PC.
it's all upto you whether you want instantaneous reactions from your PC then get a SSD or if you can live with your current speeds then your HDD would suffice..