On performance you keep focusing on select.
Shared does not block reads.
Shared lock blocks update.
If you have hundreds of shared locks it is going to take an update a while to get an exclusive lock as it must wait for shared locks to clear.
By default a select (read) takes a shared lock.
Shared (S) locks allow concurrent transactions to read (SELECT) a resource.
A shared lock as no effect on other selects (1 or a 1000).
The difference is how the nolock versus shared lock effects update or insert operation.
No other transactions can modify the data while shared (S) locks exist on the resource.
A shared lock blocks an update!
But nolock does not block an update.
This can have huge impacts on performance of updates. It also impact inserts.
Dirty read (nolock) just sounds dirty. You are never going to get partial data. If an update is changing John to Sally you are never going to get Jolly.
I use shared locks a lot for concurrency. Data is stale as soon as it is read. A read of John that changes to Sally the next millisecond is stale data. A read of Sally that gets rolled back John the next millisecond is stale data. That is on the millisecond level. I have a dataloader that take 20 hours to run if users are taking shared locks and 4 hours to run is users are taking no lock. Shared locks in this case cause data to be 16 hours stale.
Don't use nolocks wrong. But they do have a place. If you are going to cut a check when a byte is set to 1 and then set it to 2 when the check is cut - not a time for a nolock.