It mostly eliminates reflector losses..
As a side note - I've heard the HPS/vertical argument before, but wouldn't any vertical, coliseum setup yield better than a traditional flat canopy because there's more surface area (and larger plants) to light?
Also results will depend on how the led bulbs are being spaced. Always better to have all the shining directly on the plant.
And since led bulbs are relatively cool you can get them very close to the plant.
Honestly I think if somebody isn't nearing 1g/w he has to reconsider some things. That maybe the light aren't positioned optimally.
Though there are more factors