So I tested the page load with KeepAlive on and KeepAlive off. I `/etc/init.d/apache2 graceful`'d before each test, and I cleared Chrome's cache before each test. I have nothing else running on my system right now and our pipe is nice and clear. I have a 92ms ping from the office to my web server.
KeepAlive On: 5.31s
KeepAlive Off: 6.87s
1.5 seconds is an appreciable difference. It works out to roughly 10ms per request, unless it's so late that the math part of my brain has quit for the night. If Yahoo.com were loaded from my web server, having KeepAlive on would delay total page load by about 750ms -- a noticeable difference. (However, given that it takes over 4 seconds to reach page load on yahoo.com for 70+ requests, their page might actually load faster if it were hosted on my server...)
Now here's the kicker: that same customer site has been featured on a popular radio show, twice, driving over 6 million hits over 24 hours, with peak traffic at 40Mb/s, thousands of simultaneous connections, and 100+ requests per second, sustained for several hours.
The site's loading time during that period was utterly unaffected. Seriously, never even a blip. (I stayed up during the whole period just to personally watch it.)
I wasn't about to experiment with turning on KeepAlive during all that fun, but I'm reasonably confident that having KeepAlive turned on would have crushed that server, given that my customer's site was receiving substantially more traffic than even Pinboard did immediately after the Delicious announcement (http://blog.pinboard.in/2011/03/anatomy_of_a_crushing/) -- traffic that Pinboard's founder notes will usually kill an unprepared site (or server).
And keep in mind, this was all on a memory-constrained tiny little vm.
So here's my final statement on KeepAlive, which I will link back to from now on: if, as a server admin, you're turning KeepAlive on to speed up your site, then you are optimizing your server and your site in exactly the wrong way.