I have just over 2000 books on my Sony and it doesn't have a slow response time. Or not that I've noticed.
I have more on my tablet as I include many of the books in my "Vault" library (whereas the Sony only has everything in my main Calibre library).
As AnemicOak said, Calibre Companion makes having lots of books on my tablet easy to sort and use.
As for why I keep books I've already read on my reader, why not? You may not think there is a need, but I often reread or want to look up something and it's convenient.
And I like having my whole TBR as I can go "shopping" for something to read on my device.
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