I am not a big fan of templating solutions for PHP. The primary reason is because of Smarty. Its not fast compared to straight PHP and, IMO, its not that much better than PHP syntax wise. Its good for places where you need to force people to adhere to the MVC philosophy.
A coworker of mine found out about a project called Blitz. its a PHP extension that does templating. It will of course have one advantage over Smarty. Smarty is slow as its all written in PHP. PHP is slower than C and always will be. Its just life.
So, Rob did some simple tests to see how Blitz, Smarty and plain old PHP perform. I thought some folks (hey Jay) might be interested in this.