Do you hold a screwdriver better with three fingers, or with your whole hand wrapped around it? It's the same thing with collets: they hold the part around the entire circumference. On hollow parts, this results in less clamping distortion. On solid parts, it means the stock is better supported. I actually had a 2" bar knocked out of a three jaw chuck when used to hold the bar upright for milling. That's an eye-opener.
Three jaws are nice for onesy-twosey work but, if I'm going to run a bunch of something, I'll either take the time to setup the collet closer or make proper soft-jaws for the chuck.
Of course, the limitation then becomes the size of your collets.
