The thing is, if it was a major defrag you did that time with Defraggler, the System Volume Information will have tried to grow to bigger than the 10GB limit you have set. This can easily happen. Then you do lose all System Restore Points. It's a problem with Windows 7 and Vista, as explained in the Microsoft Support page, and it would have occurred with Windows built-in Disk Defragmenter too, or indeed any defragmenter. It all depends whether the size of the SVI for all that file moving of small fragments is greater than your limit setting. Either increase the System Restore limit when you do a major defrag, or you have to accept losing all System Restore Points. In this, it makes essentially no difference what defrag program you use - there could be marginal differences in the number of file moves to complete the defrag, but it is unlikely to make any difference. I suspect Defraggler is pretty efficient anyway.
The main strength of Defraggler is the ability to do a Quick Defrag on just the files with small fragments, or defrag just selected files. There is actually little point moving around big chunks of large files in a full defrag, so that is the advantage over Windows built-in Disk Defragmenter. It saves a lot of time and disk bashing!
Unless your disk is getting full, there is probably no particular reason to set a low limit for System Restore.