Short Answer: it is common to have delayed response from EDMX Designer when dealing with more than 500 tables.
We had MVC project with EF4 ORM and while having less than 500 tables in our EDM, there were number of times when EF Model Designer just hang on model update. Thus, to minimize this unpleasant behavior we maximized the resources of desktop machine (RAM to 8GB and SSD), and closed all other applications while doing update on edmx file. So, we get a dedicated one developer machine for model updates done through refreshed DB schema.
I have also made re-search on topic and find some good posts that also had bpositivepositive impact on performance of EF.
- Performance and the Entity Framework, an article from CodeProject
- Does the Entity Framework Designer optimize the underlying table design when creating the DB?
- EDM Designer's Annoying "We'll do it for you"
- Performance Considerations (Entity Framework)
Last but not least, according to recent news from EF team, there are numerious improvment in performance of EF4.3, howevet i personally did not play with it.