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At least please try to check with 3.3.2SR1 version if using older one. Many optimization tasks were done for it. And yes there could be performance problems because inplace creates js object for every component instance. We will work on it in future 4.x but currently if upgrading will not resolve your issue you will have to switch from inplace to conditionally rendered outputText/selectOneMenu which switches via ajax for that particular case.
Thanks for the reply. I noticed the JS in the output and figured that was causing the slow down. We are using 3.3.2 CR1. Does the SR have the optimizations or are they in the CR?