dropping the buffer makes it perform substantially slower - there are some benchmarks listed elsewhere on this thread
e.g. if the File implementation had an internal buffer (C stdio's "FILE " does), and the read from that* buffer was inlined (from my past experience up to date as of early 2011, HotSpot doesn't, but LuaJIT does), it might not make any difference.
Seriously, LuaJIT does things I've never thought I'd see a compiler (JIT or AOT) for any language (dynamic or statically typed) do. I used to reply to "sufficiently smart compiler" with "one hasn't appeared yet, despite at least 3 decades of waiting". But LuaJIT has appeared.