Its more for security, and system stablity.
For example, if /boot is on its own partition. I dont even have to mount it durring bootup as its not used by the system besides booting. That way I know I can't screw up and delete my kernel without explicitly mounting /boot. Likewise if /var/log or /var/spool/mail is on its own partition, I know that if my logs flip out or I get a ton of mail that I will not use up all my hard drive space and crash the system. It can also protect me from file system curruption. If /home and / are on 2 seperate partitions (or even better two seperate drives) I have a lot better chance of recovering /home if / fails due to filesystem curruption or drive failure. The only performance gain I can see is less file fragmentation, but on linux that almost never happens anyways. Personally, I use /boot (out of habbit) / and /home with /home on its own drive (60 gig drive for / and /boot (32meg) and 300gig drive for /home) I also put swap on the 60 gig drive (1024megs)