I did a quick check by adding id tags to all 700-or-so <indexterm>s in func.sgml (don't get excited, it was a perl one-liner that just added random id strings).
I did, actually, get excited for a second.
The runtime difference for building the HTML docs seems to be under 1%, and negligible for PDF output. So it looks like we don't have to worry about scalability of tagging all the functions.
Ok, so that's the function anchors.
So some references to functions are just the name, and xrefs will work fine for those.
I was thinking that there were references that included parameters, but I'm not finding any with actual parameter values, so at most we'd lose the "()" of a reference.
Assuming we want to make the anchors visible, we need a way for people to discover the anchors we've made, and my thought there is that we make the first definition a non-xref link to the indexterm just above it. Any thoughts on what the best way to do that is?