I flush the brake fluid on my motorcycle every other year. Which means completely removing all the old fluid, not just taking a little off at the calipers.
DOT 4 fluid absorbs water. Water is bad for the system. The difference in appearance between the old fluid and the new stuff is like old oil and new oil. Over time the old fluid can destroy system parts.
DOT 5 fluid is silicone based, and will not absorb water, therefore doesn"t need to be replaced. I have heard, however, that water can "pool" at the bottom of the system, and should be drained if it accumulates. Also, DOT 5 is not compatible with DOT 4 systems.
That said, you are totally correct about the hydraulics and liquid compression. New fluid will NOT make the vehicle stop any faster.
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Today's Featured Article - History of the Field Marshall Tractor - by Anthony West. Any restorer who has some knowledge of turn of the century farm machinery, will recognize the name Lanz Bulldog!! This machine was to say the least unusual in its appearance. The huge flywheel and coffee percolator shaped exhaust. Along with square body lines and cylinder head protruding forward of the front axle. Would become the visual differentiation that people would quote to separate the Lanz from other period machines. The Marshall company based at the Briannia Works in Gainsborough
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