<p>Sharepoint isn't the speediest of server applications, and I've read about a few tips to speed it up. What steps do you think are necessary to increase performance so it can be used to host a high traffic site?</p>

At the end of the day SharePoint is just a complicated web site with all the standard components.
In order to optimize performance you need to analyze each component and determine which one is a problem, and then adjust it accordingly.
We're in the process of implementing a 1000 concurrent user sharepoint website, which may or may not be large, however some steps we are taking are:
Implementing a detailed caching strategy, to cache webpart content intelligently.
Use load balanced servers to ensure all our hardware is utilised rather then lying idle.
We've undertaken capacity planning given the existing solution, so we have a good idea which component is the bottleneck for us. (The SQL Server), so we will ensure the server can cope with expected load and future growth of the site.
We're also using hardware load balancers which will ensure our network and the related servers operate as expected, and again this is something to investigate before you implement a sharepoint website.
We're also ensuring our webparts don't generate unnecessary html, and don't return unnecesary data, as this will slow down loading times.
Something which I definately think is a good idea is to have a goal to work towards, as you can spend a huge amount of money and time optimizing SharePoint, which may prove unnecessary.