They are smoother, less vibration and with a VFD the 3 phase can have speed control, something the single phase one can't have.
I thougt you can control the speed of a 1ph motor with a triac based controller. seen them for about £10

Do these only control the speed and therefore have reduced power as well?

Seen a couple of VFDs on ebay for £150. dose this seem about right?