All hardware RAID worth its salt will have caching. Does it get rid of lag? What lag? The Mercury Elite should have caching.
The reason we put media on a secondary drive is due to the bandwidth available to hard drives. Only a specific amount of data can flow between a drive and the CPU. Video and audio eat this up fast with video editing because you're using several live streams at once.
The OS and application are reading/writing to their hard drive constantly, also. This is why you much keep 10-15% of any drive's capacity as free space, for these invisible working files to be dealt with by the app and OS. So yes, your app and OS are constantly needing to read/write to the system drive to get work done efficiently. An app is a living, breathing entity that runs between the system drive it's on, the CPU, RAM, GPU, etc. It's giving out instructions constantly and having to go back to itself on the drive when new operation instructions are called for. Yes, an SSD OS drive is a big step towards system speed.
I'm looking into one for my 3,1 Mac Pro. Not sure I can. That and a GPU upgrade is all I'd need to do. I'm running off 3 internal 2TB media drives, no RAID, and I'm getting great performance.