I do not think that our subversion slowed down by aging. We have currently several TeraBytes of data, mostly binary. We checkout/commit daily up to 50 GigaByte of data. In total we have currently 50000 revisions. We are using FSFS as storage type and are interfacing either directly SVN: (Windows server) or via Apache mod_dav_svn (Gentoo Linux Server).
I cannot confirm that this gets svn to slowdown over time, as we set up a clean server for performance comparison which we could compare to. We could NOT measure a significant degration.
However I have to say that our subversion is uncommonly slow by default and obviously it is subversion itself as we tried with another computer system.
For some unknown reasons subversion seems to be completly server CPU limited. Our checkout/commit rates are limited to in between 15-30 MegaBytes/s per client because then one server CPU core is completly used up. This is the same for an almost empty repository (1 GigaByte, 5 revisions) as for our full server (~5 TeraByte, 50000 revisions). Tuning like setting compression to 0 = off did not improve this.
Our High Bandwith (delivers ~1 GigaByte/s) FC-Array idles, the other cores idle and network (currently 1 GigaBit/s for clients, 10 GigaBits/s for server) idles as well. Okay not really idling but if only 2-3% of available capacity is used I call it idling.
It is no real fun to see all components idling and we need to wait for our working copies to get checked out or comitted. Basically I have no idea what the server process is doing by fully consuming one CPU core all the time during checkout/commit.
However I am just trying to find a way to tune subversion. If this is not possible we might need to switch to another system.
Therefore: Answer: No SVN does not degrade in performance it is initially slow.
Of course if you do not need (high) performance you won't have a problem.
Btw. all the above applies to subversioon 1.7 latest stable version