It depends on so many factors (and no, merging isn't the most common operation - commit is, putting your changes into the thing is the single most important part of it even if DVCS systems do spend all their time merging up and downstream).
So, firstly you need to upgrade your SVN. That's easy, and once you've run 'svnadmin pack' on your repo you'll be able to compare properly. 1.3.2 is ancient! (current version is 1.6.11)
Second, you need to decide whether pushing and pulling large repositories about is important to you. For example, I have a 12 Gig repo to manage. Fortunately, svn allows us to only fetch parts of that, not the whole thing, so management of it is much improved.
Also, there are significant performance improvements coming in v1.7 (ready oh so soon), as performance hasn't been a priority for the SVN guys, they're really been adding features and ensuring rock-solid stability instead. Now, performance is an issue and is being addressed. Take a look on the dev mailing list to see. It might be worth your while to wait a little (or evaluate it using a copy of your repo).
You see, performance may well be the same with your system. It could be bottlenecked on IO which is where svn usually fails (thought the dev mailing list does have some perf figures from a chap with a monster server with raid-0 SSDs, 24 Gb RAM and strangely enough it's bottlenecked on CPU!)
So all in all, you have to figure out your workflow and processes. If Mercurial (which is a good choice) provides that for you, then great, go for it. But if it doesn't, then migrating isn't going to help you no matter how much faster it might be.