Will still be a compilation hit for very large projects, but less than with an everything depends on the kitchen sink approach, been through that pain point ;-)
My biggest gripe these days is with the presentation compiler in Eclipse, that can get pretty laggy when working with heavily inferred code, your own, or a 3rd party lib like Shapeless, Scalaz, etc. Not sure if IntelliJ is much better in this area, would be surprised, inference is costly.
I completely agree with you with regard to presentation of code. A simpler language would allow for simpler error highlighting in your editor which would be especially valuable. Lots of languages also suffer from this problem though...
What do you mean when you say "awful" and how does that compare to your test cycles?
Sometimes I wish that scala had some compiler-flag that signals these problems, maybe a restricted mode or something with annotations.