> Yet it still swaps to disk ALL THE TIME Is it actively paging to disk at times when there is plenty of free RAM? A common complaint on Linux is "I've closed a lot of stuff but it is still using swap" because even if the pages are read back into RAM when next used they are kept in the swap area in case they need to go out again (that way they don't need to be written unless changed, saving some I/O).
Under Linux you can see how much is found in both RAM and on disk with the "SwapCached" entry in /proc/meminfo - it won't stop counting those pages as present in the swap areas until either it runs out of never used swap space so needs to overwrite then to page out other pages or the page is changes in memory (at which point the copy on disk is stale so can not be reused without being updated anyway).
> and a new Terminal.app window can take up to 5 seconds to open.
Have you monitored system activity at such times to see where the delay is? While it could be due to unnecessary disk I/O it could also be elsewhere such as delayed DNS lookups if anything in your profile scripts does such a thing and there is an issue with your connectivity or DNS configuration.
(I'm not an OS X user and never have been so sorry if these thoughts are irrelevant - but I'm guessing memory management in OS X is similar enough for knowledge of how Linux plays the game not to be completely useless)