I guess it should perform better with a vidmem buffer if the buffer is holding static data and not locked after the initial upload.
Maybe, yeah. Though I'd be surprised if a ddraw application did that...
That was basically the original idea behind vertex buffers: to hold static data in video memory so that's faster to access by the GPU (mostly in the sense of avoiding data transfers from SYSMEM).
Similar idea behind ProcessVertices(). If you wanted to draw with dynamic data, you'd use the non-VB Draw[Indexed]Primitive variant.