Yes, using Rack Optimisation will reduce the number of connections utilised.
Example : A 17-slot chassis full of Digital* I/O modules will require 16 connections. Using Rack-Optimisation reduces that to 1 connection.
* Analog I/O modules cannot be added to the Rack Optimisation method.
Disadvantages : None except that all digital I/O in the chassis has to run at the same RPI rate. If you do need an I/O module to run at a different rate, it can be added to the configuration so as not to use Rack Optimisation.