regardless of the *HUGE* number of applications that stopped working, check the performance of a typical system running SP2 vs. SP1 on Windows XP sometime. i too used to say, nah, thats being paranoid. unfortunately, M$ is a company with absolutely no scruples. check out how M$'s vaunted anti-spyware stopped flagging Claria items after M$ bought them...
I have my main machine here that is running SP1, a few dual Xeons running SP2, and a dual-core Intel 840 running SP2.
Even given the fact that they all (currently) have different purposes, I can tell no difference in performance.
Is there something in particular I should be looking for?