So there's nothing wrong with the transactions themselves, you're just curious about how they are implemented in MySQL's internals.
I'm sure that the innodb site can tell you alle about that, but one thing to note is that while transactions do allow you to insert at higher speed, you still pay a price durin the commit, when all records are updated all at once. You get to insert many records at high speed, but you'll have to wait longer during the commit.
Some databases buffer all the inserts and don't write them to the datafiles until you commit. This means lightning fast inserts and rollbacks, but very slow commits.
Other databases write the changes to the datafiles immediately and buffer any 'old' records as an 'undo' file. This gives slower inserts and rollbacks, but much faster commits.
The second method is more efficient because about one in ten transactions ends in a rollback, the other nine are commited, so having a high commit-speed is usually better than a high insert speed (because how often do you find yourself inserting 10k records/second?)