Your TV out card is probably trying to output at a fixed resolution (like 640x480), regardless of what type of input you feed it. If your CPU can rescale a low arcade resolution (like 320x240) to 640x480 faster than the card can, then you should do your resizing in software. If your card can do it faster, then don't bother doing any software resizing.
That being said, it may be that the card still likes to mess with input, even if it is ideal (ex. still performs processing on 640x480 input even if mame is outputting at 640x480). In this case, there is nothing that you can really do, cause it's the TV functionality of the card that is the bottlneck.
I performance tested a Nvidia Geforce 2 in Dos TV out mode VS Windows TV out mode, and I got a performance boost when going to Windows (undoubtedly because of the Direct X accelerated Windows drivers).
Because I wanted to stick with dos, I ended up dropping the TV out idea entirely, and running advancemame with a real arcade monitor. That way, I could output the exact resolution of the game straight to the monitor, without having to worry about scaling and the like. The speed increase was also substantial over dos mame and TV out.
In the end, you are gonna have to performance test your card using various mame resolutions to see if there is an improvement.