Version 1.3.0 available on App Store, September 26th 2011
I actually like the new update.
1) Sure, it didn't fix the lag for everyone, but in all honestly it will be darn hard to fix the lag, because of the number of moving parts there, of which GA only controls a small portion.
2) As to humongous group of "friends" on your lists slowing everything down, I really don't see it as an issue that GA needs to, or even possibly can, address, unless they want to enforce a lower limit again. Dunbar's number of social relationships that one can actually properly manage is between 100 and 230 and that's probably as good a guide as any. Use the tool smarter and everything will be fine. Don't blame the tool creator for your use of the tool.
1) Beacon list lag is the main issue for most of the mages I have heard from, and this update didn't address it at all. There are alot of factors that affect this I am sure, but I think that a beacon list work-around/removal similar to the one suggested here: http://www.shadowcities.com/forum/topic/1757/ would greatly improve this.
2) I have over 800 friends currently, and while I may not pm each of them everyday, I make contact of some kind with well over 100-230 of them. Also, I do not need to be good friends with somebody to be able to respond if they call for help. (which I currently struggle with because I get hung-up in beacon list)
A car looks nice with fresh paint, designs, maybe a radio or even a TV. But if the engine is messed up or broken or the tires popped or lacking pressure, then what is the point of owning it?