DNS caching is not a new idea, but DnsSpeeder scores over other programs because it is easy to use and is no-install. As an example, visiting amazon.com will store the IP address 207.171.166.252 on the local hard drive, so that it does not have to be looked up every time the site is visited. The downside is privacy, because DnsSpeeder will store a list of names of the websites visited, which would not be cleared by the normal browser cleanup. DNS lookups typically take around 200ms (1/5 second), so the time saved by DNS caching is not great unless the server is responding very slowly. DnsSpeeder is worth a look, but beware, it is tracking your browsing habits very thoroughly.
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