Is this better than using an SPV wallet, or is it the same? I don't get the benefit of storing any of the blockchain, if you aren't going to store the whole thing. Maybe I just don't understand how it works.
Of course it is. You are a pruned node, which is not the case with a SPV wallet. Essentially you can help others become pruned nodes as well, but you are unable to help people become full nodes. Security also depends on how many blocks (storage) you set to hold.