Hi
The article points out potential hazards of using updatepanel if not used properly . And I can easily say that if not used properly then any technology can be dangerous . Asp.net ajax provides an envoirnment similar to that of server side processing in client side . There are various features of asp.net ajax which I guess you have not looked into . If you are concerned about the traffic then you can happily drop updatepanel and start using web services .
Also having toolkit controls on your page forces lots of script resource files to be downloaded . You can actually get a performance benifit by checking out the following blog by Lance Zhang :- http://lancezhang.wordpress.com/2008/11/15/aspnet-ajax-performance/
Also in your scriptmanager control remember to set ScriptMode = "release" and LoadScriptbeforeUi = "false" for slight improvement in performance.
Regards
Pawan Mishra
Moving from Asp.Net to WPF and SilverLight .....
.Net 360°