Jason Bush wrote:
There would be performance issues indeed, and it would be come more pronounced
with greater amounts of traffic to you website. Also if your database server and web server
are on seperate machines, if you website received a high amount of traffic, your
local network would slow from the extra traffic.

In this situation it is almost certain that the network is not configured optimally for the application.  We use a database on a separate server and have dedicated NICs for the connection to the database server that are on a different subnet from the traffic generated by incoming requests.  This way we are certain that network traffic on the front-end won't be a hindrance to the DB requests.

On the subject of performance issues, we host several zope sites that use an external database and notice very little, if any, performance degradation from using an external DB.  Our application makes use of a huge amount of highly relational data -- something that lends itself well to an RBDMS -- and we have had no issues with performance at all.  In fact, when we were prototyping our application we used Python Products to attempt to store the data and the relationships in the proper manner.  What we found in our case was that Zope was an order of magnitude slower when emulating a multi-table join than going directly to the DB with optimized SQL.  Of course, YMMV.

Kevin