RH 6.1 ships with pam_pwdb configured in /etc/pam.d/login etc. Yet for systems with many users (100's to 1000's), pam_pwdb takes *seconds* to check a password against /etc/passwd. If the pam_pwdb lines in /etc/pam.d/login are replaced with the appropriate pam_unix_{auth, acct, session}, then little or no delay is seen on log in.
I agree this is a problem ; however, a correct solution involves extensive rewrites - we will be switching away from pwdb in the future.