Many small files isn't too much of a problem on fulls, but is painful for incrementals. I have a 650GB qtree with 10 million files. The full takes about 16hrs, and the incremental takes 3-4hrs, most of which is just figuring out which files to back up. On both full and incrementals, no data is written to tape for the first 2+hrs. This isn't as big a deal on fulls (~40GB/hr average), but makes incrementals take much longer then similar sized volumes with fewer files.
Once either the full or incremental starts moving data, the speed is similar to any other data.
John