The advantages of using Squid are:

The disadvantages are:

The pros and cons presented above indicate that you might want to use Squid for its dynamic content-buffering features, but only if your server serves mostly dynamic requests. So in this situation, when performance is the goal, it is better to have a plain Apache server serving static objects and Squid proxying only the mod_perl-enabled server. This means that you will have a triple server setup, with frontend Squid proxying the backend light Apache server and the backend heavy mod_perl server.