Yes, absolutely. I'm pretty much entirely out of shape, and when my seat was a bit too low, it felt like pedaling was inefficient, like my muscles weren't being used properly (like the way it's harder to lift something heavy with your arms extended away from your body, and so much easier to do the same when the item is closer to your body). My legs got tired super fast (and I already get tired super fast! this was super faster!). I raised the seat by an inch and felt like I could ride all day.

Someone who is more fit might not notice the difference so strongly.