SharePoint stores customized site pages in the content database. So, suppose there are 1000's of pages which are created and modified by users (say by adding webpart), some are created and modified using SharePoint designer. All these will sit in the content db.

Isn't it performance issue. Because they need to be fetched from the database?

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The setup you describe can cause performance issues depending on how many users you have logged on concurrently, how many I/O requests your SQL server is dealing with from SharePoint and other sources and and what your SQL Server Topology looks like.

One way to avoid this sort of performance issue is to create your site collections with powershell instead of the Central Admin GUI and specify a seperate database for each site collection.

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