Read that article I linked to earlier from macperforamanceguide. Drive size does make a difference in computer performance.
True, it does.. and you would notice it in high performance applications. For the 95% of us though, you are unlikely to see significant gains by running out purchasing a new bigger drive.
You would see some gains simply because all of your data is now contiguous and if you did a reinstall you wouldn't have all of the "stuff" that we all slowly add over time.
Your article also talks about partitioning your drive and placing critical data on the outside of the drive. Thats cool if you really, really need the performance. Again, that would only be for high performance applications and now you are into what could be a very manual process. If you get anything wrong, your performance could be worse or you might have to backup all you data, repartition and reload your system. And you do all of this for maybe 40% increase in read transfer time, writes are cached.
Also remember, if you read the same data frequently, you will read it from cache in memory, not from the disk. I'm not an expert on Mac OS X memory, so someone please correct me if I'm wrong but in addition to the filesystem cache, Mac OS X also caches other stuff, the stuff that you see as inactive memory in system monitor. On my system it is currently 1.4 GB. Those are applications that were recently used that if restarted will be run from memory, not from the disk. (
http://support.apple.com/kb/ht1342)
So again, unless your application is very IO intensive, like encoding HD video or a very active database, a human will not notice much of a difference just because that have a larger hard drive.
In general, more memory will yield better performance gains than a a larger hard drive. Thats not always true but more often than not. If you know that you application does not have enough memory and is paging, adding more memory will always be the biggest bang for the buck.