I can think of a lot of ways to vary this, though which is faster I'm not sure.
Firstly you can use the points as the Initiator features for the FeatureReader. ie each point queries the polygon dataset with a spatial filter (Initiator is Within Result), just the the PointOnAreaOverlayer does. Just set Geometry as "Use Initiator" and it should keep the geometry and merge in the attributes of the source polygons. Saves having a two-step process.
Secondly, you don't need to reproject there and then back again. You can just use the CoordinateExtractor to fetch the coords in NAD and use the AttributeReprojector transformer to reproject those values to State Plane. That, I think, should save you some time; and means you don't have to risk changes to your geometry by round-tripping through a reprojection process.
Thirdly, as Takashi says, the Clipper is almost certainly quicker than the PointOnAreaOverlayer - at least in my experience - so even if the above ideas don't help, switching to a Clipper should be a benefit. Note, it's not that the Overlayer is inherently slower at doing the same thing, but it does carry out additional functions (such as counting the number of overlaps, or generating lists) that the Clipper doesn't do, and which I don't think you need here.
Edit: Some other ideas/thoughts I just had...
Are these points always the same? Or re-used frequently? What I'm getting at is that if there is any way to save the state plane zone (even if it's in a lookup table with a foreign key match) future processing will be much quicker than re-doing a spatial filter. Or, if these are addresses with address info stored as attributes, then you already know which state the address falls in, just not which zone. Basically spatial filtering is an expensive process in my experience, and if you can avoid it, or minimize it, then you're saving a lot of time.
I'd also add that I don't believe Clippers First, or Areas First is going to save you much time here. Generally they reduce memory use rather than time. The time aspect only comes in to play when you use up so much memory that FME has to cache to disk. That's when xxxx First can save time, by preventing disk caching. But for 5k point features? Shouldn't be an issue.