I've heard that Magento's (all versions) Categories/Subcategories logic is slow, and resource intensive if you have lots of categories. I've got over 2500 categories and probably will be adding more. My site loads very slow now, and I'm starting to get concerned and worried. I pinpointed the slowness to the cateogylist.phtml and sidebar menu.
Question: Can Magento handle this many categories and process sidebar navigation efficiently?
I have heard from several developers that Magento is a slow dog if you have many categories.