Check out what Linus Torvalds, Linux creator says:  
http://www.theregister.co.uk/2009/09/22/linus_torvalds_linux_bloated_huge/

Just a snippet:  /"Linux performance had dropped about two per centage 
points at every release, for a cumulative drop of about 12 per cent over 
the last ten releases. "Is this a problem?" he asked.

"We're getting bloated and huge. Yes, it's a problem," said Torvalds."
/
...  With no plan in sight to fix this.

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