This is an interesting read (pulled from my delicious links) on database optimization, and the downsides of normalization:

Normalized data is for sissies

The article links to a pdf presentation given by Cal Henderson, who helped create Flickr. A quick snippet:

In Flickr’s case, they have 13 SELECTs for every INSERT, DELETE, and UPDATE statement hitting their database. Normalization can slow SELECT speed down while denormalization makes your I/D/Us more complicated and slower. Since the application part of Flickr depends so heavily on SELECTs from the database, it makes sense for them to denormalize their data somewhat to speed things up.