This option should be disabled on POS stations by default. With some POS stations, we've noticed an issue where the temp file used to store pre-generated template data becomes locked and causes a problem with receipt rendering. The result can be an error message at the POS like "Unhandled exception in the PrecompileTemplatesHook: Exception has been thrown by target of an invocation". In this instance disabling temp file logging can help.
The downside is that receipt template debugging is disabled. This functionality is especially useful when modifying an existing receipt template layouts. Please disable this function with care and only when necessary.