After testing on a subset of the NAIP imagery, it is clear that using all 5 pyramid levels from the original NAIP rasters is twice as fast to display/refresh than a mosaic dataset that uses only overviews. In addition, using the default tile size of 5120 (rows and columns) results in a quicker display than using a smaller tile size of 2000. Still�?�even with the pyramids and the larger tiles, the display/refresh lag can be 1-4 seconds at various scales. Decreasing the footprint size didn't make any difference in the refresh time with the mosaic dataset.
From my experience with mosaic datasets compared to my experience with raster mosaics, I�??m not convinced that a mosaic dataset will give us better performance. A mosaic dataset is most certainly much easier to create, but the end result (quick display and refresh) is not as good as a raster dataset.