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Ok, you're right. All binary distros do all their compiling on 486s, and Gentoo is faster because using -O99 and -mpentiumpro opt settings will give you at least a 50% performance increase. I wonder if funroll-loops will accept your quote for their site.
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No. All binary distros get compiled on Pentiums (even Windows) thus not taking full advantage of the processors capabilities. Gentoo (or anything compiled with the correct flags) will be faster on a more advanced processor then binaries produced for lower end processors. And there is no such thing as -O99 anything higher then 3 will be considered as 3. If you do some searches you can actually find stuff out rather then repeating stuff from the funroll-loops site.
Granted there are people who are taking gentoo optimization to an extreme but then again so are people who overclock their computers or tweak settings in games to get maximum performance from their video cards.