From what I understand if you add output="false" to a cfcomponent or cffunction tag, it still buffers the output generated from the function, it just throws it away at the end. (maybe I am wrong). It always reminded me of how the cfsilent tag works. In Railo, you can add the bufferOutput="false" attribute to the cfsilent tag that will suppress the output completely. The downfall is, you can't do any dump-abort type debugging inside the tag. I have seen a performance improvement with using cfsilent bufferoutput="false" and it got me thinking...it might be nice to have an administrator setting (maybe called, "buffer cffunction/cfcomponent tag output") that treats output="false" kind of like cfsilent's bufferOutput="false" so there is no buffering inside cfcomponent and cffunction tags (if output="false"). the setting set to true would be the cfml standard, but the performance junkies can turn it off for an extra boost. Maybe the boost is negligible. I don't know.
(michael offner says)
we should also support the same in the application.cfc, something like: