The answer partly depends on whether (or not) you have PAV support in your 
DASD hardware.  Last I knew, only dynamic PAVs will provide performance if 
you have multiple page datasets on a single volume (UCB); statis PAVs will 
not, and hyper-PAV support is still on the drawing board.  IBM has 
recommended a minimum of 4 locals (or 4 paging paths).

Now, for most environments, paging is not much of an issue today ... storage 
is plentiful and cheap.  Issues can arise when an SVC dump occurs.  The SVC 
dump is first written to a dataspace.  This may cause frames from other 
applications to get paged out.  (The system will probably go disabled for some 
time around here ... not exactly sure when.  You need a frozen picture of the 
system to be included with the dump.)  Once the dataspace is populated, the 
system will being processing again, and the dataspace is written to the dump 
datasets.  Storage will then come available for the frames that were paged 
out to make room for the dataspace.  (How much room - it depends ... think 
of a large CICS region using a multi-gigabyte DB2 region ... you get the idea.) 
 
You really want this to happen quickly and non-disruptively; this means many 
page datasets and many ways to get to them.

So, unless you have dynamic PAVs, lots of locals is still better.  DS/8000s 
will 
let you carve up the DASD however you see fit.  (I like 3390-2s for locals ... 
YMMV.  I have hyper-PAVs and z/OS 1.9.  I don't think that the dynamic PAV 
support is yet available for hyper-PAVs ... IBM?)

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