Drives are divided into sectors and each sector has the same amount of data. The data on the sectors for the outside tracks are spaced father apart and take longer to read. Data in the inner track is much closer together and takes less time to read.
I think you are
wr incorrect there. For two reasons:
1. Assuming there is the same number of sectors on inner and outer tracks, the read times are identical since the disk is spinning at the same speed for them all. That is, it takes some specific time to do one rotation, and in that time it will read the amount of data in one track. Which, as you point out, will be the same number of sectors and, hence, data.
2. You can improve storage space by having more sectors on the outer tracks. There is a limit as to how close the 'bits' can be, and on the inner tracks that spacing would be, let's say, 'tight'. As you move out, the same data is spread over more disk so the density is less. If you squash it up to be just as 'tight' as on the inner tracks you now have more sectors on the outer tracks.
Maybe you've just spotted that in case 2 you now have more sectors going under the head per rotation, and that means in the same time. Thus you get a performance increase if you cram more sectors into the outer tracks. So you are kind of right in that the effective performance can be increased, but missed how it's done.
[edit: 'wrong' is a negative word]