Wed, 6 Jul 2011 13:00:00 +0800, /Ben Caradoc-Davies/:

Mercurial allegedly has some space-performance problems handling
renames of directories, which end up doubling the space used in the
repo. This might make the current implementation inefficient for
large projects.
http://evadeflow.com/2011/04/why-not-mercurial/

Mercurial 1.9 already includes support to improve the situation in that direction <http://mercurial.selenic.com/wiki/WhatsNew#Mercurial_1.9_.282011-07-01.29>:

1.1. Major features

  * Experimental generaldelta storage scheme

--
Stanimir

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