Rebuilding iTunes Library File

I have been using iTunes since the beginning and would like some feedback about the itunes Library file.
I have been using the same iTunes Library file since the beginning of the program and as my library grows and the version upgrades continue to modify the library file, is it time to create a new library file. Everything seems to be working ok except that it does take several seconds for iTunes to modify it's database when I make a change to a playlist or Tag info. I understand smart playlists occupy a lot of time and I do have quite a few of them, but would rebuilding the Library file help that at all.
Losing all of the playcounts and playlists is not acceptable.
TIA

Yes I do back up.
My iTunes Folder, which includes the Library File, the Music Folder, and the XML file are all stored on an external firewire drive. I have a symbolic link to the external drive located in the Music folder of my boot disk. This works as expected. The reason I do this is so I can take the external drive home from work, copy the symlink to my home Mac, replace the real folder with the symlink, open iTunes and all playlists and playcounts are intact. Basically pick up where I left off. The only downside to this is that I must have the volume available or iTunes will quit because it can't find or create a Library file. I can live with that. Simply rename the symlink temporarily and reopen.
My main question was referring to the Library file itself. Is it possible that as time went on and new versions of iTunes come out and the database needed updating, can the Library file become fragmented. If I remember correctly, initially Apple had the SoundCheck value stored in the Library file. Now it is stored directly in the mp3 or aac file. Does this now uneeded data still live in the library file?
I am thinking about making a third backup, create a new library and add all of my music to the empty library to see how if flies. I know playlists and counts will be gone, but may shed some light on how the Library file is managed.
Comments?
TIA

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