It's funny that this topic should come up just now. I made my first soaps with sugar in them (1 Tbsp PPO) 4 weeks ago. I tried one last night and it felt great on my skin. I don't know if sugar is supposed to make a difference in that way, but it seemed to. I used the same formula, otherwise, as many of my other soaps. Actually, this soap had pumpkin instead of water - I suppose that could have made a difference as well. Whatever it was, this soap left my skin feeling noticeably more moisturized than the others I've made.
As far as suds (which is what the sugar is supposed to help with), I didn't notice a big difference, but it was the first use and the soap is barely cured, so I'm sure it will evolve. Also, I have really good suds with all of my soaps so far, so it's hard to say whether this made them better. I love the idea of putting sugar in Castille soaps. It certainly can't hurt and they need all the help they can get in terms of lather.