Actually, i think Nick nailed it in his very first post.
Break material - lots of alpha acids get dragged out of the boil as break material forms, one of the reasons why you get a lower effective utilisation of hops in higher gravity worts, more gravity from more malt which means more break and a higher loss of alpha acids.
Put your hops in after the boil has started, and a really significant amount of break has already happened, alpha acids dissolve into the wort and stay there, then isomerise (well, its not as simple as that but lets stick with the simple model for now) - put your hops into your wort when its still heating up, and the alpha acids dissolve into the wort, and as the wort gets hotter and break starts to form, it pulls the alpha acids (or possibly the iso alpha acids, i cant remember which) out of solution with it.
I've never heard that FWH contributes less bittering than a 60min addition - just that it contributes less than it would be possible to achieve with the maximum utilisation you could get from the hops if they were added post the boil starting. Thats around about at the 90mins in the boil mark. So for me, I do 90min boils all the time and expect that if i do a FWH addition, i would get from those hops a little less bitterness than i would get if i added them at the "90min" mark. But would still expect them to give me an equivalent or slightly higher contribution than a 60min addition simply because they have been in the boil for longer.
Smoother bitterness?? Perhaps because there is simply a little less of it than some people would calculate, so in side by side tests of beers "calculated" to have the same bitterness levels, the FWH is actually a little less bitter and this tastes less harsh - OR - I speculate and have read a few snippets in papers here and there, that perhaps cohumulones are more inclined to become caught up in the polyphenol/protien complexes of break, than are other isohumulones. So when a portion of the alpha acids are lost because the hops are added as FWH, not only is the overall bitterness lowered, but the cohumulone ratio is lowered, effectively resulting in a lower cohumulone hopping regime. lower cohumulone levels result in a perceived "smoother" and less harsh bitterness - just like FWH does.
Increased aroma? Some people substitute a portion of their late kettle hopping out for FWH as they believe that FWH can result in a less fleeting, deeper and/or less inclined to drop off with age aroma profile. Its not really a school of thought i adhere to, but its possible i think that exposure to hot, but not boiling wort gives the terpene and sesquiterpene fractions time to do some oxydising... Into alcohols, humulene epoxides etc which are both more aromatic and less volatile than the hydrocarbons. So rather than a 10min addition that loses 99.9% of its hydrocarbon aroma components as soon as they hit the boil... You manage to convert some of those things over into more stable and more smelly oxygen bearing compounds. - OR - there is a chance that in the (once again) hot, but not yet boiling environment in the kettle as FWHs are added, hop compounds are reacting with wort glucose and forming glycosides - and the way glycosides contribute to hop flavour and aroma is something that is being explored by the brewing scientists atm. So perhaps its glycosides that form during the early moments of the hop addition, which are lasting all the way through the brewing process and only breaking down as the beer ages, releasing new aroma compounds into the beer and contributing to the increased depth and longevity of aroma in FWH beers.
Some of that is stuff i know to be true, goodly chunks are speculation. But it adds a little bit of why (well, maybe why) to the what that people seem to notice on their taste bu from FWH additions.
TB