It looks like having kbfiles causes quite a lot of status-related Mercurial commands be much slower. For example, "hg status". A lot of GUI clients use hg status a lot, which also makes those clients feel much more sluggish.
Our repositories are quite large (~11000 files, ~700 megabyte working copy + .hg folder, additionally ~1GB worth of kbfiles). On MacBookPro Core i7 2.66GHz, with SSD disk, on no-changes repository clone:
hg status: 0.3 seconds, with kilnbfiles disabled in .hgrc
hg status: 3.8 seconds, with kilnbfiles
So presence of kilnbfiles makes hg status 10 times slower!
Maybe there are some low hanging fruits in what kbfiles does in hg status/summary and other commands, that could be optimized away?