Cold conditioning helps to precipitate out both tannins and yeast in the beer. Both can create off flavors, so in general cold conditioning will improve the flavor of your beer.
I really noticed the difference when I went to kegged beers, since I store three kegs in the fridge at all times. I usually will carbonate and store the kegs in the fridge, so they are essentially cold conditioned from the time of bottling.
What I noticed was that even some of the beers I had intended to keep cloudy (such as Wit and Weizens) would clear much more quickly than I had intended in a cold keg. However, most of my friends love to pour a crystal clear beer so they did not complain much.
Cheers!
Brad