Firebug slows Firefox waaaaay down for me. Every time I open a new tab, it spikes the CPU for like two seconds and hangs during that time. And this is with it configured as "disabled". If I actually disable the whole extension it's fine.
Follow up: I think I might be experiencing the spike when *closing* tabs. That's something that's been reported to them based on threads I was reading.
Follow up: Firefox 3, with the latest beta of Firebug, does not have any slowdowns for me, either opening or closing tabs. I'm in love with Firefox 3 for lots of reasons, but overall speed improvements and better memory usage tops the list.
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