The performance of the Navigation Manager heavily depends on two
factors:
a) Your RedDot CMS version (7.1.x; and versions between 7.5.1.31 and .
91 had some issues)
b) Your navigation construct (e.g. number of navigation levels total,
number of levels displayed simultanously, used render tags).

So you can't judge Navigation Manager performance on such a general
level. Personally, I used Navigation Manager in many enterprise
projects (partly with fairly complex navigation requirements) without
any *major* performance issue. Of cause, some navigation constructs
with additional scripting lower the overall performance – but same
would be true for a list/XML/RQL solution in that case.
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