Earlier quoted context omitted.
I'm not sure this would work - if an operation needs you to stat() a file for every file in the repo (for example), whether it is 10k files in 1 repo or 1k files each in 10 repos will probably just as bad?
An operation in git makes you stat() each file in the current repo -- so things like check-ins and local operations would be done 100% in the current repo. Any time you were pulling the entire repo tree, it could be slow, yes. But assuming people are only working in one or a small number of repos at once, you can imagine a workflow that didn't involve nearly so many operations on the entire tree.
(I almost habitually run "git status" whenever I've task switched away from code for even a few seconds to make sure I know exactly what I've done, which would have to look over the whole super-repo as well.)
Thankfully we're a while away from the times based on the synthetic test - it's not something I notice at all, but I probably write less code than most engineers here.