The 2 main advantages I can think of for creating subprojects is that it allows you to:
1. Re-use code. Class libraries containing common functionality can then be reused in other applications to save me writing things over and over again.
2. Organize code into logical sections. One big project can fast get messy. Splitting things into manageable chunks makes things easier.
You shouldn't notice any performance issues from having several subprojects versus one massive project, either in VS or at runtime. I've found any slowdown to be negligible to the point of not noticing.
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