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Larger partitions will take longer to defrag, scan, and so on. So that is part of the performance issue. If you don't want to divide up your space, though, then don't. It's personal preference.
Can I ask why you are running RAID 0? Do you have a need for it, or are you doing it just because you can? I would never put my Windows install or any important data on a RAID 0 array unless it was backed up daily. If one of those two disks fails, you lose everything. For the average home user, the risks far outweigh the benefits.
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