This explanation is purely from personal experience and logical thinking
I believe most of the third party apps that suspend on exit take a screenshot and then save their state to the .app folder (not sure, it could be to the RAM but I doubt it). When you open up the app again, it shows the screenshot (the current status bar is shown but everything else is the screenshot) while it loads the app up to the point it was at before. When it is done loading, the screenshot goes away and you are left with the interface that you left with.
This technique has been used by some apps since before iOS4, but is not what is being referred to as fast task switching. With the new OS, the ability for a fast resume was added. This allows the app to actually stay in RAM in a suspended state in order to eliminate any delay when switching apps. Apps are automatically killed when resources are needed by the OS and could default back the method you describe.