There are many stages of sleep; stage 1 through 4, and REM sleep. These, it is hypothesized, have distinct physiological functions. Most importantly for this discussion, waking up out of each have very different effects.
Waking from stage 1 sleep makes you feel immediately refreshed, and people perform better immediately have tests of mental acuity. This is also true of REM sleep; additionally you often remember dreams.
Stage 2 is also good. A good 30 minutes afterwards, you will feel better rested, and your mental acuity will rise; for longer than from stage 1, but it is a delayed effect.
But if you wake up out of a deeper sleep cycle, you get 'sleep inertia.' Mental acuity plummets. You feel poorly rested and ill.
The problem:
The body is often not even aware that you are sleeping in stage 1 sleep. You are in a different physiological stage, but you may not have lost consciousness.
You usually are in this stage from minute 5 onto minute 10. And in stage two up to about 15-20 minutes. After that, you can fall into a deeper sleep; which waking up from is very problematic.
I used to set my alarm for 30 minutes. I'd way up, feel even more tired, and set my alarm for 30 minutes again. This was ruining my life.
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tl;dr
Even if you don't lose consciousness, you can still be 'sleeping' and a nap of 20 minutes will greatly help you feel healthy and well rested.
I now do this combined with a caffeine nap (green tea) and it works perfectly. There's a point where I deep in my conscious I realize I'm dropping the item. As it hits the floor my eyes open, and I feel refreshed almost immediately afterwards. The time for me is about 25-27 minutes from laying down to the drop.
Insomnia and other things are very real, but in this case the problem was with what I felt was a good rest.