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Hi, good question regarding performance! What you describe should be easy to handle, Groups is designed to perform well in more extreme setups. You should however use appropriate caching, as that will help in making your site perform appropriately.
Regarding the add-on, as that is a commercial product, please note that the forum guidelines advise Do Not Post About Commercial Products apply. Anyhow, the answer to your particular question about protection and query loops would be yes. If you have any further questions on the extension, you’re welcome to post on the extension’s page or if you are a customer you can submit a support topic here.
I hope this helps, many thanks for using Groups!