Hi @hemanth_sreenu ,
Regarding your questions:
1. Yep, there's some consideration that you need to do in order to apply the correct sizing to your environment, especially if you have a large number of content. As you can see from the official docs [0] you can use the benchmark test in order to understand what's the most appropriate sizing
2. The usage of "Activate on blueprint" options is helpful for the editing, but you are right, it can cause some performance issues if the sizing is not correctly. What I can suggest is to avoid the access to the "Activation Tree" just to avoid a very large issue, and try to monitor the system into the initial phase in order to understand if the sizing is compliant with the editing behaviour
3. Yep, analysis is every time a best practice. If you collect thread dump, you can identify easily if the queue is creating some issues.
[0]https://docs.adobe.com/content/help/en/experience-manager-64/managing/managing-further-reference/har...
Thanks,
Antonio