It affects game performance because it's not operating at full performance, duh. Obviously, 60 is better than 30 don't you agree, as 90 is better than 60 -performance. Just because you see 60 frames, how does that tie in to frame performance. If the card was pumping out 30fps, you would still be seeing 60fps from the monitor, so I guess then that you would still see uncanny performance.
With Vsync, not only are you capping your frame rate, you are also subjecting it to an even lower frame rate in times when the card has to stop rendering and wait, not doing anything - wasting clock cycles sitting in it's desk with its hands holding his head up staring at the ceiling - wait until he can draw another frame. There is more of a lag with response time when Vsync is also on killing your gaming experience.
Try playing it without Vsync for a while and then go back to vsync. There will be more lag. Vsync off has the power of showing in between frames to make transitions from one frame to another smoother.
Anyway, its totally up to you, I like playing with vsync off.
Here is a selection from 3dfx Tools help file so you can understand easier.
V Sync - This feature synchronizes a game?s maximum 3D rendering frame-rate to the vertical refresh rate selected for the current display mode. With a 75 Hz vertical refresh rate, for example, a game with V Sync enabled would not be able to render frames faster than 75 times a second, which can result in pauses or lags in the on-screen action as the rendering is delayed to synchronize it with the next screen refresh.
Disable V Sync to allow a game to render frames as fast as it can, even if that rate exceeds the screen?s current vertical refresh rate. This can produce a more fluid and continuous gaming experience, but it can also allow for some screen tearing or artifacts under certain rare conditions.