This is a difficult question for me to answer beyond my own personal testing. Patrick did the review of the Western Digital "JB" products in the following article:
http://www.tomshardware.com/storage/02q1/020305/index.html
I have to agree with is conclusions in the article, the drive is an excellent buy and I too highly recommend it.
My experience with the drives is perhaps a little more extensive than Patrick's as I have two of the 80GB "JB" series drives in my workstation that I use every day here in my lab. From my experience with the drives, they seem to excel in areas like Photoshop or video editing. (Anytime that I am working with very large files!)
The over all performance of the drive is quite good and I have been impressed with the technology behind the drives.
As for the cache, it seems to me from my discussions with Western Digital that the idea they have a new advanced highly optimized cache strategy that improves performance might be a little more marketing hype than anything else. It is obvious to me that in situations where you are dealing with large files there is an improvement in performance, but in normal every day use the performance gap isn't perhaps as large as WDC would like us to believe.
A few weeks back I saw 4 of the 100GB JB series drives in a RAID 5 configuration on an Adaptec 2400A controller and I have to admit that for the data base application server that this systems was configured for the performance improvement was very good. Again, these folks were using the drives in a configuration that was dealing with a lot of large data base file what were storing pictures, so perhaps this was a good application and I further liked the performance of the Adaptec 2400A controller as well. It is a very good option for those who want RAID 5, but don't want SCSI.
The bottom line is in my opinion, Yes, it is a better drive in many situations, but depending on the use of the unit will dictate the over all performance improvement and while it might not be as large as some might like, anything that improves the performance of the hard drive, I am all for. With the "JB" series drive being priced as reasonable as they are here in the states, if you are going to go IDE there is no reason why you should not consider the "JB" series drives even if the performance gain isn't all that much.
Better than SCSI for server applications? - I really find that hard to beleive that a good Compaq array could not beat the snot out of the "JB"s in a simular situation, but cost the "JB" drives should give you more storage for less money. Depends on the application as to what is important to you.
BTW - I saw some one suggest that you can pick up the SCSI drives cheap on Ebay, and I too want echo that, but what you have to watch for is that they are not OEM drives that are pulls, because in those cases many time the drive maker has sold the warranty for the drive to the OEM and if the drive should fail you are not going to be able to RMA them back to the drive maker. I saw this with some Seagate drives that came via Compaq and Seagate refused to honor the warranty on them and Compaq said that they were sold with an Array and if he could not prove where they were purchased, Compaq was not going to replace the drive either. Let the buyer beware!