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I very much agree with the 80/20 rule being applied to optimization. Updating a function or two is almost always enough. Sometimes making an i/o cache intelligent is a good type of optimization too.
It's been about 10 years since I've tried to "beat the compiler" with optimizing to assembly for mobile phones. I'd be suprised if that works anymore for any popular platform.

The biggest point, in my view, is that most major performance problems can't be fixed with a little code tweaking, but typically require a major rethinking of algorithms and data structures. Also, it is truly difficult to identify the performance bottlenecks without measuring them, and this is best done after the code is functionally complete.