Yes, but we're talking about the chips included in the launchpad - you can as well buy an ATMega168 for $5 and use a parallel port programmer.
There's an overhead when booting the Arduino, but afterwards you're running native code, and you can make it as fast as you want. Want faster IO? #include <avr.h> and use memmapped IO. Want a faster LCD/servo/whatever library? Write your own, you'd do that with an MSP430 anyway.
Arduino is not only about the official arduino.cc boards (which I wouldn't touch, either). There are tons of clones, ranging from $5. Not to mention you can easily build an Arduino environment with a PDIP ATMega and a RS232 converter out of a bunch of transistors or a PDIP MAX232. It's entirely feasible, even for a beginner.
If you are going to use it just like a normal AVR, what's the point of buying the Arduino?