I agree that these sentences gloss over the details - and rightly so: it's an article in Ars, after all, not a journal article. We (Microsoft) have published a lot[1] about our journey to put Enterprise-scale codebases, like the Windows codebase, into Git. I think you'll find that they expand upon some of the things that are glossed over.
And I would encourage you to read them, so I won't belabor the details here, but to give you just one example: git blame is not the issue that we're most concerned about. The basic, highest priority functionality in Git - things like git add - are the the issues we're most concerned about.
git add is O(n) on the number of files in the repository. When you run `add`, git reads the index, modifies the entry (or entries) that you're changing, and writes the index back out.
The Windows repository has about 3.5 million files[2]. Running `git add` - when we started thinking about moving Windows into Git - took minutes.
Can you imagine running `git add` and having it take 10 minutes?
Now obviously there are some inefficiencies here - there's quadratic operations and the like that went in assuming that nobody would ever put 3.5 million files into a Git repository. And we've been cutting those out over time[3].
Thankfully, Git does have some functionality to support very large repositories - using shallow clones, sparse checkouts and the like. We've added narrow clones, to only download portions of the tree, and automation to handle this automatically without user intervention.
That's the scaling work that we're doing with GVFS. And these changes bring the P80 time for git add down to 2.5 seconds[4]. We've been contributing these changes back to git itself, and we're thrilled to work with industry partners like GitHub who are also interested.
Sorry to go on - version control is a passion of mine, as it is for many of us working on Visual Studio Team Services. Your conclusion is very much correct: Git wasn't designed for this from the beginning. Thankfully, software isn't immutable, so we're scaling it up.
[1]: http://gvfs.io/
[2]: https://blogs.msdn.microsoft.com/bharry/2017/05/24/the-large...
[3]: https://blogs.msdn.microsoft.com/devops/2017/05/30/optimizin...
[4]: https://blogs.msdn.microsoft.com/devops/2017/11/15/updates-t...