reduce friction between the rotors, tighter seal between rotors and housing. plus, if you really start to spin the crap out of it I'd rather have a small chunk of teflon go into the motor than a small chunk of aluminum.
The rotors shouldn't actually touch, so the coating dosen't reduce friction. I think it provides a better finished surface without having to extra finely machine the actual rotors (takes up some of the imperfections and gaps). It Would also reduce some of the heat buildup.
Been awhile since I researched this so going STRICKLY from long term and potentially eronous memory (my legal disclaimer)...
The telfon allows for very tight machining and assembly tolerances. The components will expand with heat and have runout that could allow metal to metal contact under high load. With teflon the teflon coating thickness itself becomes part of the tolerance and instead of metal to metal any potential contact becomes teflon to teflon.
The closer the tolerances the higher the efficiency. Teflon therefore creates higher efficiency due to the closer tolerance it allows.