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yes, you see all the database processes, lots of them
yes, it's slower (until someone has something different to say)
I suppose you can get your DBA to do some database tuning, but these settings may be lost when you patch/upgrade the EC. The other option is to run a separate database on another server.
Sorry, I should have been clearer. I was concerned about the LOCAL=NO. I thought since the database is resident on the same machine, it would be LOCAL=YES.
I haven't done much oracle database work in many years and I'm not sure how things work these days.