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After noticing that my Galaxy S3 sometimes grew slow after a week or so of not rebooting, I set up a Llama task which reboots my phone automatically every night (under certain conditions).
My question is simply are there any downsides to rebooting a phone daily?
To answer your question, there is no downside if you reboot your phone on a regular basis.
off topic: Android OS should not require a reboot, or it should not slow down your phone that much that you feel to reboot it. There may be a problem with an app or something, but that is for another topic.
Check Task Manager to see if any unnecessary resource hungry application is running in the background. I use Clean Master to keep the machine out of junk. These make my device somewhat faster.
