Nope, you're confused. Inetd (and its variants) is a service that launches services on demand. So basically proftpd is not running until you ask for it. This causes you some latency when you connect, but it saves you cpu cycles while you aren't using FTP. Daemon mode means it runs all the time, like a normal service.
Unless you're setting this up on an ancient (read: pre-pentium 2) piece of hardware, proftpd isn't likely to cause much overhead. I just use daemon mode, typically.
Thanks, I reconfigured and it is working as expected.
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