Generally this seems to be a better situation, but not always. Performance aside, wheel covers sure do make the wheels on Johnny Lightnings look better!
One drawback with the Johnny Lightning wheel covers is that if your race allows graphite it is much harder to get the graphite in all the places where your wheel and axle experience friction. Particularly inside that wheel cover where the axle rubs on it. You can pop the wheel covers off and then add graphite, but sometimes (most times from my experience) the covers can be difficult to get off without damaging the wheel or bending the axle. I have not done that with any of the Studebakers I have and have only seen marginal improvement with graphite.