Less Down Time
Another important thing to factor in when considering dungeon leveling is that the amount of down time you experience will be a lot less. Unless your entire group wipes, you probably won't have to run back to get your corpse. As long as a healer or other party member with resurrection powers is still alive, you can be resurrected without having to run back. Also having more creatures packed into a smaller space means there's not as much empty space to run through in order to reach your mobs.
One thing about down time that you should keep in mind is that time you spend actually waiting for a group. This is especially true for DPS classes because often the line for DPS is quite long. Tanks and healers will often be able to get in instantly, but DPS classes may have a lot of down time actually waiting for their group to begin. This down time is best spent running solo quests because a little bit of experience is better than none.
Every time you're dungeon leveling, you will also find that you're able to kill mobs faster in a group. Even if the pulls are coming one creature at a time, four or five people targeting that creature all at the same time will kill it much faster than just one player targeting it alone. This creates an exponential effect when you're talking about the speed of dungeon leveling.