This is probably a stupid question but does it slow things down when more intensive use is needed?
Not at all, it's just reducing the amount of voltage running to the CPU during each step. Same amount of processing power, but less voltage. If you lower it too much, you usually get kernel panics or shutdowns, because the CPU can't function with so little power running to it.
So Intel specs the ULV processor in my ultimate 11" to run at a max of .95v at 1.6ghz. When the CPU isn't being taxed, it clocks down to 800mhz using .875 volts to save battery and heat. So what coolbook does is allow you to feed the processor .875 volts at 1.6ghz. It just so happens that it works out on these CPUs without a crash.