jarred_mccaffrey said:
I understand that diluting xtol will lead to compensating effects, but I don't understand how this leads to an increase in film speed.
You've answered your own question here. Film speed is related to shadow detail. In Zone System terms, the film speed is related to the minimum exposure required to produce a Zone I density of 0.1. This is a somewhat arbitrary figure, but the concept is that the "speed point" is measured as a minimal significant density over film base+fog. For particular films, you might find you get results you like better with a higher Zone I density (i.e. more exposure/lower EI).
A "compensating effect" is an increase in shadow density without as much of an increase in highlight density, so compensating developers can be used to gain a real increase in film speed.
"Push processing" usually doesn't bring about much of an increase in real film speed, because when you just extend the processing time or raise the developer temperature, you increase highlight density without increasing shadow density significantly. The result is really an increase in contrast, often misunderstood as an increase in film speed.
Using dilute developer or reduced agitation or a compensating developer, though, you can really get more shadow density without increasing highlight density excessively--and that's more speed.