Processors’ Influence on performance

Just a general question – perhaps it should be a discussion?

It has been said and agreed by many, that to increase the speed of a computer, the best and cheapest route is to expand the RAM.

OK, but I should like to know the impact on performance of increasing processor speeds and the “L1 and L2 caches”, whatever they might be, and the “bus speed” (whatever that is).

Since the likes of Intel and AMD have been ploughing ahead with ever-faster processors for years, I imagine that there must be something in it.

Despite my undemanding computer usage I cannot help but admit that I am speed-obsessed – a speed-freak!

Paul