I'm of the mindset of using the appropriate tools in the appropriate places. m0n0wall is my favorite small router OS. I use it where the hosting hardware isn't large, for reasons of power, budget, or what was simply laying around collecting dust.
In a larger environment you can easily exhaust m0n0wall's default state table, increasing that requires a kernel re-compile.
In a larger environment, using "larger" hardware, pfSense might be your better choice.
Otherwise, hardware specific, there's 2 main types of constraints: throughput and CPU. CPU will be used for VPN and traffic shaping. A 3Ghz P4 should be fine for a large amount of VPN traffic (that's VPN "hosted" by m0n0wall, not passing VPN traffic through m0n0wall, that's just regular traffic.)
Throughput issues are usually caused by NICs, busses, or NIC Drivers. A modern 3.0Ghz P4 machine may have multiple Ethernet ports, if they're "Intel" chips on them, assume that you'll be able to route a lot of traffic with that, possibly up to most of a Gigabit conenction, if that's what the ports are. If there's a PCI-Express slot you should be able to put in a PCI-Express NIC, possibly with multiple ports, in this situation you won't be affected by the bus speeds. If standard PCI is your only option for extra ports, expect to be able to host a single Gb interface without too much congestion on the PCI bus, more than that and individual ports may slow down. 10/100 port cards on a PCI bus shouldn't be bus limited untill you get up around 10 ports, assuming they're all saturated with 100Mb of data, which likely isn't happening anyway (and, you still have to get 10 ports physically on there, which means dual or quad port cards, multiple of them.)
Basically, from an IT admin perspective, I use m0n0wall for small situations where I need to cheaply route a small number of machines, such as creating a small Dev network or customer WiFi, or something similarly "small". I have used it at an old job to provide guest wireless to customers during events, used the captive portal to "authenticate" our guests with a simple password. Eventually I heard that there was one particular event where a lot of users were using VPN back to their respective companies and it over-ran the state table. They "upgraded" to pfSense and all was well. (This was on a Dell PE 2850, so, I think 8GB of RAM, dual P4 Xeon's of some speed in the 2.8Ghz range, 2x onboard BroadCom Gb nics.)
Now, I'm not steering people away from m0n0wall, I run it at home for my main router and I use it for VM isolation all the time, but for "larger" installations, pfSense may be viewed as m0n0wall's big brother.
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