I’ve seen no evidence that the size of a library has any negative effects on performance.
Since Libraries are self contained, and since to copy an asset from one library to another requires duplication – it seems smarter to keep the entire movie in a single Library.
The things that seem to dome up most often that slow X down are A – trying to work with non-supported, non-transcoded or non optimized Original media as your base editing format – (particularly long-GOP variants) that X has to transcode on the fly to work with. And B – over-use of certain third party plug-ins for global stuff like noise reduction or project wide color effects.
On the transcoding stuff, remember X references pools of footage and can switch its pointers simply and easily. So if you import in whatever Native Format you shoot in, but Optimize to ProRes and also let X calculate Proxy media, you can have thinner versions of the footage to allow you to work fast and efficiently – then simply export your final in the highest possible resolution by having X reference the original footage for your High Rez Masters.
There’s almost no reason to try to edit with live huge media files.
FWIW.
Know someone who teaches video editing in elementary school, high school or college? Tell them to check out http://www.StartEditingNow.com – video editing curriculum complete with licensed practice content.