I have been reading/watching the exchanges thus-far, and I feel obligated to now explain why, in MY home network, I went from a Hub to a Switch and the performance gains that I have noticed. YMMV.
First, let's agree that a "Hub" operates at the Physical Layer (Layer 1) of the 5 Layer (TCP/IP) or the 7 Layer (ISO/OSI) model. And, let's also agree that a "Switch" operates at Layer 2 (Data Link Layer) of these models.
Now, my network in brief:
2 Vista PCs, wired gigabit
2 Macs, wired gigabit
1 Mac, wireless (g)
3 Apple TVs, two wired, one wireless (n)
1 Yamaha MusiCast system, wireless to 3 MusiCast Clients, wireless
1 Yamaha Receiver (plays net radio), wired 100
2 AirPort Express Base Stations, wireless (g) for music
1 Phaser Printer, wired 100
3 DirecTV HR20s (recording satellite boxes with the ability to play local music), wired 100
For me, upgrading to a Switch yielded an order of magnitude (10x) improvement in syncing my Apple TVs, with a quiescent network. With an "active" network (file transfers in parallel to Apple TV syncing/copying new media), no performance degradation as compared to the quiescent network.
Is my home network "typical"; probably not statistically. Is it 'outrageously different' from some others that have posted here? No.
Of course, if the 'network' consists of an Internet connection, 1 computer and 1 Apple TV, you will not be generating enough packets to measure the performance improvements of a Layer 1 device as compared to a Layer 2 device. Conversely, add devices, and the benefits become clearly apparent in favor of a Layer 2 device.
Cheers,