I assume the "reality" of RAID goes like this:
1) Real raid uses a rain controller than plugs into a card slot (the
faster the better). The controller does all the hard work, removing the
processing burden from the host PC.
It's not "real" raid, it's "hardware raid". A hardware raid card
handles the raid on the controller card. This has some advantages, such
as more efficient use of the system's IO bandwidth and the possibility
of using a battery backup.
It also has some disadvantages, such as the lack of flexibility (limited
raid modes, no mixing of modes with the same disks, no usb disks for
extra safety during replacements, etc.), the disks are tied to the
particular hardware (if the board dies, you need an identical
replacement to be sure of recovery of your array), and management is
often poor (such as having to reboot to the raid bios, or using hideous
management software).
Typically, an OS can see the hardware raid as a single big drive without
extra software or drivers, which is nice. But you normally need extra
software for management of the raid.
And the hardware raid may or may not be faster than software, depending
on the type of system and the type of usage. The main cpu in a modern
system is far faster at calculating parities than the cpu in a raid
controller card, for example, and software solutions can often give
faster raid layouts (Linux raid10,f2 on two harddisks will outperform
anything a hardware raid can do with two disks in either raid0 or raid1).
And of course, hardware raid cards cost a lot of money - especially with
a battery backup (and they are pretty pointless without a battery). You
also often have to pay extra for "advanced" features such as raid6.
2) Fake raid uses some chip on the mobo, in addition to software that
the CPU needs to run all the time.
Fake raid don't actually use any motherboard chips - they are basically
a very limited software raid implemented in software in the bios so that
you can configure it or do recovery from the bios setup screens, and the
OS can boot from it. Beyond that, it requires drivers in the OS to
support it (as the OS does not use the bios), and it's all run in software.
Fake raid has all the disadvantages of software raid, and all the
disadvantages of a really cheapo hardware raid (inflexible, tied to the
one system, etc.).
But if you are using an OS that doesn't have proper support for software
raid (i.e., Windows, whose software raid is very limited), then it can
be a convenient and easy-to-use system.
3)software raid is self explanatory.
Software raid means the OS handles it. This means that the raid is only
as safe as the rest of the system - you can't get the advantage of
battery backed caches. And unclean shutdowns (crashes, power cuts,
etc.) can lead to time-consuming checks and re-syncs, depending on your
setup.
You also use more IO bandwidth - if you are writing two copies of
everything to raid1, your cpu has to write everything twice, rather than
letting a hardware raid card do the duplication. And of course the main
cpu has to do all the calculations, but that is usually a small burden
on modern cpus.
In return, you get an array that will work on any copy of the same OS on
any hardware, and that can be hugely more flexible than hardware
solutions (assuming you are using an OS with good software raid
support). You can mix and match raid types to suit particular
requirements, you can change things easily from within the system. With
Linux (and probably other *nixs, but I haven't tried with them) you can
freely mix different disks of different types and sizes within arrays,
and you can re-shape and re-arrange your arrays while running.
As an example, this means you can temporarily add an external USB disk
to a raid5 array and re-sync it to a lopsided raid6 with all parity on
the USB disk. Then you can re-arrange the raid5 disks (perhaps swapping
them out for bigger disks or replacing old ones before they fail) step
by step, without ever losing your redundancy. Once everything is
finished, you can remove the USB disk and go back to raid5.
And of course all your tools are integrated into the OS.
I've only done fake raid. The raid cards cost more than the mobo, and it
is tough to justify the expense with the fake raid on the mobo already.
However, in theory, when you get into these situations where the mobo
fails and you have a real raid controller card, you can plug that card
into another Pc and it will be able to read all your drives. [As
interface slots have migrated over the years, this might not be possible
in all cases. That is, the old controller needs to work in the new PC.]
When you installed a fake raid, you might of had to take a step where
you inserted 3rd party drivers during the installation phase. I know I
did this in win2kpro, but not in win7 pro. Opensuse does a good job of
being equipped with the fake raid drivers.
Don't use fakeraid with Linux - mdadm software raid is better in every
way (except perhaps ease of setup if the distro you are using does not
support it in its installer).