What type of repo do you have? FSFS or BDB?
(Let's assume FSFS for now, since that's the default.)
In the case of FSFS, each revision is stored as a diff against the previous. So, you would think that yes, after many revisions, it would be very slow.
However, this isn't the case. FSFS uses what are called "skip deltas" to avoid having to do too many lookups on previous revs.
(So, if you are using an FSFS repo, Brad Wilson's answer is wrong.)
In the case of a BDB repo, the HEAD (latest) revision is full-text, but the earlier revisions are built as a series of diffs against the head. This means the previous revs have to be re-calculated after each commit.
For more info: http://svn.apache.org/repos/asf/subversion/trunk/notes/skip-deltas
P.S. Our repo is about 20GB, with about 35,000 revisions, and we have not noticed any performance degradation.
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