1. Hard drives are fast, but files are so big. So access from hard drive on a PC will never be as fast as access from a dynamic RAM: drive.
Erm, that's a bit of a silly way to put it. Really big files aren't going to fit comfortably into memory either. Chances are they'll get paged out to hard disk anyway.
2. Writing and deleting files frequently as would happen if you used your hard drive as a dumping ground for eg unarchiving stuff which you delete afterwards results in disk fragmentation, reducing your PC's performance over time.
That really depends on your filesystem. Using your Amiga's RAM disk to save disk fragmentation is all well and good but you're ultimately just fragmenting the memory instead. Which isn't a great idea. With 256MB of ram, I've been unable to run an application needing 32MB without a reboot due to this issue.
3. Its a pain to have to delete unwanted files, wouldn't you just prefer they weren't there next time ypou booted... oh hang-on no-one here boots up anymore so yeah you have to remember to delete otherwise you'll soon have a lot of crap you don't want filling mots of yor hard drive.( don't tell me, hard drives are so BIG now THAT akso doesn't matter).
Use /tmp for your dumping ground and use tmpwatch. Problem solved.
4. what about installing and running software in RAM just to check it out?
Sure, that's handy sometimes.
Incidentally, you do realise that RAM disks are available on other operating systems, right?
For example:
$ mkdir /var/ramdisk
$ mount -t tmpfs none /var/ramdisk -o size=16m
Et voila, a 16MiB ram disk. It's actually more like RAD, in that it's fixed size, but like RAM: it's entirely volatile.