I think that the configuration that you suggested is excellent. Mirror the OS disk and RAID 5 the data disks. This gives the OS a failover and allows the data disks to offer more storage space with fault tolerance.
Generally I would say that hardware RAID is better than software RAID only because hardware RAID offloads much or all of the calculations to place the data on the disks. This leaves the CPU with less work when writing to the disks. If the server is busy then offloading work from the CPU is always a good idea. Plus, it may make configuring the OS a bit simpler. If the hardware RAID does all of the work then the configuration that you mentioned should look like two disks to the OS. Some hardare RAID shares the work with the CPU. This will be trickier to configure but should still help performance.
You should always question the source of advice. I've worked in the support business as a server system administrator for 20 years and I've worked with RAID configurations a lot.