So you're saying that GVFS isn't a good idea because it's not good enough for working on the Windows repository?
Well, yeah. It's pre-production, and let Microsoft worry about their own problems anyway. But it sounds like GVFS will be killer for people who have large repos that aren't as large as the Windows repo. Even if 4-5s for the 270GB/3.5M file repo is too long, 400-500ms for the 27GB repo is fantastic.
At some point you ask yourself, "Would I split this repo if my tools could handle the combined repo just fine?" If the answer is no, then you're going to be happy that the tools are getting better at handling big repos. Microsoft's choice to exploit the filesystem-as-API and funnel all filesystem interaction through the VCS is a smart choice and there are a ton of opportunities for optimization that don't exist when you're just writing to a plain filesystem.