Directory sizes in file system repositories.

I am sure that this is answered elsewhere but I cannot find it:

If multiple developers and projects are using the same repository, don't the
various directories under the db (revs and revprops) become rather oversized
eventually? While some file systems will survive with thousands of entries
in a single directory, most have a down side when going to extremes. How do
people cope with large development environments that have frequent changes?

Also, I have seen people recommend structuring repositories in two different
ways:

repo/(project1, project2, ...)/(trunk,branches & tags)/
and
/rep/(trunk, branches, & tags)/(project1, project2, ...)

Is there someone who has used both and now believes that they know which is
optimal?

Thanks

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