>>1
In a word, hell yeah. It bundles up a series of multiplications and additions - some of the most basic things a computer can do - into a x-by-y structure, replacing more complicated and less pipelined vector mathematics. About the worse thing you have to do is sine and cosine things, for which there are a variety of people-specific solutions to increase speed in bulk. You'd be doing that anyway.
Imagine having a third-dimensional geometric shape and you wanted to manipulate all its hundreds of points by one calculation. Forget where points are in relation to each other, angles between things, and all that; a matrix don't care. Just plug the appropriate values, multiply the right matrices together for the transformation, and then multiply the points matrix and the transformation matrix. Unless your language fails at loops, it's practically fucking magic.